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AVGO vs DOCN

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
DOCN
DigitalOcean Holdings, Inc.
BEARISH
Price
$95.21
Market Cap
$9.9B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
DOCN
37.78
Forward P/E
AVGO
19.65
DOCN
56.59
P/B Ratio
AVGO
20.79
DOCN
-305.16
P/S Ratio
AVGO
24.35
DOCN
10.98
EV/EBITDA
AVGO
46.0
DOCN
35.9

Profitability

Gross Margin
AVGO
76.73%
DOCN
59.86%
Operating Margin
AVGO
44.94%
DOCN
16.01%
Profit Margin
AVGO
36.57%
DOCN
28.76%
ROE
AVGO
33.37%
DOCN
--
ROA
AVGO
10.66%
DOCN
5.64%

Growth

Revenue Growth
AVGO
29.5%
DOCN
18.3%
Earnings Growth
AVGO
31.6%
DOCN
90.1%

Financial Health

Debt/Equity
AVGO
0.83
DOCN
--
Current Ratio
AVGO
1.9
DOCN
0.69
Quick Ratio
AVGO
1.67
DOCN
0.6

Dividends

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

DigitalOcean exhibits a precarious financial profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a critical liquidity deficit with a current ratio of 0.69. While the stock has seen an extraordinary 1-year price surge of 217.9%, it now trades at a significant premium to its intrinsic value of $74.34 and above the analyst target of $89.92. The combination of negative book value, bearish insider activity from the CFO, and a forward P/E that exceeds the current P/E suggests a valuation peak and potential earnings contraction.

Strengths
Strong gross margins at 59.86%
Consistent history of beating earnings estimates (3/4 last 4 quarters)
Healthy profit margin of 28.76%
Risks
Severe liquidity risk with a current ratio of 0.69
Negative shareholder equity indicated by a Price/Book of -305.16
Bearish insider sentiment with CFO and Officer selling shares

Compare Another Pair

AVGO vs DOCN: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and DigitalOcean Holdings, Inc. (DOCN) 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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