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AVGO vs EPAM

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
EPAM
EPAM Systems, Inc.
NEUTRAL
Price
$118.98
Market Cap
$6.28B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
EPAM
17.71
Forward P/E
AVGO
19.65
EPAM
8.55
P/B Ratio
AVGO
20.79
EPAM
1.76
P/S Ratio
AVGO
24.35
EPAM
1.15
EV/EBITDA
AVGO
46.0
EPAM
7.48

Profitability

Gross Margin
AVGO
76.73%
EPAM
28.88%
Operating Margin
AVGO
44.94%
EPAM
11.86%
Profit Margin
AVGO
36.57%
EPAM
6.92%
ROE
AVGO
33.37%
EPAM
10.33%
ROA
AVGO
10.66%
EPAM
7.55%

Growth

Revenue Growth
AVGO
29.5%
EPAM
12.8%
Earnings Growth
AVGO
31.6%
EPAM
9.9%

Financial Health

Debt/Equity
AVGO
0.83
EPAM
0.04
Current Ratio
AVGO
1.9
EPAM
2.59
Quick Ratio
AVGO
1.67
EPAM
2.48

Dividends

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

EPAM presents a classic value trap profile: fundamentally sound but technically broken. With a Piotroski F-Score of 4/9 (Stable) and a negligible Debt/Equity ratio of 0.04, the company is financially healthy, yet the stock is in a severe multi-year downtrend (-74.1% over 5 years). While the current price of $118.98 sits comfortably below the growth-based intrinsic value of $146.83 and offers an attractive PEG ratio of 0.71, the combination of bearish insider activity and a 0/100 technical trend suggests a lack of immediate catalysts for recovery.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.04
Strong liquidity position evidenced by a Current Ratio of 2.59
Significant undervaluation relative to growth (PEG Ratio: 0.71)
Risks
Severe negative price momentum (1-year change of -24.7%)
Bearish insider sentiment with consistent selling and zero buying
Low net profit margins (6.92%) for a technology services firm

Compare Another Pair

AVGO vs EPAM: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and EPAM Systems, Inc. (EPAM) 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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