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AVGO vs DFIN

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
DFIN
Donnelley Financial Solutions, Inc.
NEUTRAL
Price
$50.49
Market Cap
$1.44B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
AVGO
68.48
DFIN
43.9
Forward P/E
AVGO
19.65
DFIN
9.85
P/B Ratio
AVGO
20.79
DFIN
3.41
P/S Ratio
AVGO
24.35
DFIN
1.88
EV/EBITDA
AVGO
46.0
DFIN
9.44

Profitability

Gross Margin
AVGO
76.73%
DFIN
63.44%
Operating Margin
AVGO
44.94%
DFIN
10.96%
Profit Margin
AVGO
36.57%
DFIN
4.22%
ROE
AVGO
33.37%
DFIN
7.95%
ROA
AVGO
10.66%
DFIN
11.32%

Growth

Revenue Growth
AVGO
29.5%
DFIN
10.4%
Earnings Growth
AVGO
31.6%
DFIN
8.7%

Financial Health

Debt/Equity
AVGO
0.83
DFIN
0.48
Current Ratio
AVGO
1.9
DFIN
1.06
Quick Ratio
AVGO
1.67
DFIN
0.84

Dividends

Dividend Yield
AVGO
0.74%
DFIN
--
Payout Ratio
AVGO
47.17%
DFIN
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)
DFIN NEUTRAL

DFIN presents a mixed profile with a stable Piotroski F-Score of 4/9 and a significant valuation gap, as the current price of $50.49 far exceeds the Graham Number ($19.58) and Intrinsic Value ($23.06). While the stock trades at a steep premium to defensive values, its Forward P/E of 9.85 and PEG of 0.97 suggest the market is pricing in significant earnings growth. However, bearish insider activity and a 0/100 technical trend signal short-term caution. The company's consistent history of earnings beats provides a fundamental floor, but liquidity remains tight with a Quick Ratio of 0.84.

Strengths
Strong track record of earnings surprises (3/4 beats in last 4 quarters)
Attractive Forward P/E (9.85) compared to trailing P/E (43.90)
PEG Ratio of 0.97 indicates fair valuation relative to growth
Risks
Significant overvaluation relative to Graham Number and Intrinsic Value
Bearish insider sentiment with recent sales by the CEO and officers
Weak liquidity position (Quick Ratio 0.84 is below 1.0)

Compare Another Pair

AVGO vs DFIN: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Donnelley Financial Solutions, Inc. (DFIN) 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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