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AVGO vs DAVA

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
DAVA
Endava plc
BEARISH
Price
$4.34
Market Cap
$229.3M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
DAVA
--
Forward P/E
AVGO
19.65
DAVA
3.32
P/B Ratio
AVGO
20.79
DAVA
0.3
P/S Ratio
AVGO
24.35
DAVA
0.31
EV/EBITDA
AVGO
46.0
DAVA
7.76

Profitability

Gross Margin
AVGO
76.73%
DAVA
24.15%
Operating Margin
AVGO
44.94%
DAVA
-1.6%
Profit Margin
AVGO
36.57%
DAVA
-0.4%
ROE
AVGO
33.37%
DAVA
-0.48%
ROA
AVGO
10.66%
DAVA
1.69%

Growth

Revenue Growth
AVGO
29.5%
DAVA
-5.9%
Earnings Growth
AVGO
31.6%
DAVA
--

Financial Health

Debt/Equity
AVGO
0.83
DAVA
0.44
Current Ratio
AVGO
1.9
DAVA
2.39
Quick Ratio
AVGO
1.67
DAVA
2.39

Dividends

Dividend Yield
AVGO
0.74%
DAVA
--
Payout Ratio
AVGO
47.17%
DAVA
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)
DAVA BEARISH

DAVA exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health and deteriorating operational efficiency. Despite appearing deeply undervalued on a Price-to-Book (0.30) and Price-to-Sales (0.31) basis, the company is experiencing a systemic collapse in valuation, with a 5-year price decline of 95.2%. Negative revenue growth and a staggering -46.7% YoY EPS growth suggest a 'value trap' scenario where low multiples are justified by declining fundamentals. The disconnect between the bullish analyst target ($8.57) and the bearish insider activity and technical trend suggests significant risk.

Strengths
Extremely low valuation multiples (P/B 0.30, P/S 0.31)
Strong short-term liquidity with a Current Ratio of 2.39
Manageable Debt/Equity ratio of 0.44
Risks
Severe fundamental decay (Piotroski F-Score 2/9)
Negative revenue growth (-5.90% YoY) and contracting top line
Catastrophic long-term price performance (-95.2% over 5 years)

Compare Another Pair

AVGO vs DAVA: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Endava plc (DAVA) 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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