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AVGO vs CLS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
CLS
Celestica Inc.
NEUTRAL
Price
$410.21
Market Cap
$47.16B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
CLS
57.13
Forward P/E
AVGO
19.65
CLS
31.55
P/B Ratio
AVGO
20.79
CLS
21.27
P/S Ratio
AVGO
24.35
CLS
3.81
EV/EBITDA
AVGO
46.0
CLS
38.21

Profitability

Gross Margin
AVGO
76.73%
CLS
12.06%
Operating Margin
AVGO
44.94%
CLS
8.71%
Profit Margin
AVGO
36.57%
CLS
6.72%
ROE
AVGO
33.37%
CLS
40.49%
ROA
AVGO
10.66%
CLS
10.1%

Growth

Revenue Growth
AVGO
29.5%
CLS
43.6%
Earnings Growth
AVGO
31.6%
CLS
77.7%

Financial Health

Debt/Equity
AVGO
0.83
CLS
0.41
Current Ratio
AVGO
1.9
CLS
1.44
Quick Ratio
AVGO
1.67
CLS
0.82

Dividends

Dividend Yield
AVGO
0.74%
CLS
--
Payout Ratio
AVGO
47.17%
CLS
0.0%

AI Verdict

AVGO NEUTRAL

Broadcom exhibits a dichotomy between elite operational performance and poor deterministic value metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a massive premium to its Graham Number ($44.08) and Intrinsic Value ($151.04). This valuation gap is partially justified by a very attractive PEG ratio (0.68) and strong forward P/E (19.65), suggesting high growth expectations. However, aggressive insider selling by the CEO and CFO, combined with a bearish technical trend, offsets the strong analyst 'strong_buy' consensus.

Strengths
Exceptional profitability with 76.73% gross margins and 44.94% operating margins
Strong growth trajectory with ~30% YoY increases in both revenue and earnings
Impressive earnings track record with consistent beats over 25 quarters
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Strong bearish insider sentiment with 14 sell transactions and 0 buys
Technical trend is currently 0/100 (Bearish)
CLS NEUTRAL

Celestica Inc. exhibits a stark divergence between its explosive growth metrics and its deterministic health indicators, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers exceptional revenue (43.6%) and earnings (77.7%) growth with a consistent track record of beats, the current price of $410.21 represents a massive premium over both the Graham Number ($55.82) and the growth-based Intrinsic Value ($211.81). The combination of bearish insider selling and a weak technical trend suggests the stock may be overextended despite strong analyst sentiment. Consequently, the valuation risk currently outweighs the growth momentum.

Strengths
Exceptional earnings growth (77.7% YoY) and revenue growth (43.6% YoY)
Strong Return on Equity (ROE) of 40.49%
Consistent earnings beat record over 25 consecutive quarters
Risks
Severe overvaluation relative to book value (P/B of 21.27)
Weak financial health quality as indicated by a Piotroski F-Score of 3/9
Significant insider selling, particularly by the President and COO

Compare Another Pair

AVGO vs CLS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Celestica Inc. (CLS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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