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AVGO vs FIS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
FIS
Fidelity National Information Services, Inc.
NEUTRAL
Price
$45.73
Market Cap
$23.68B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
FIS
62.64
Forward P/E
AVGO
19.65
FIS
6.63
P/B Ratio
AVGO
20.79
FIS
1.69
P/S Ratio
AVGO
24.35
FIS
2.22
EV/EBITDA
AVGO
46.0
FIS
11.55

Profitability

Gross Margin
AVGO
76.73%
FIS
36.86%
Operating Margin
AVGO
44.94%
FIS
24.64%
Profit Margin
AVGO
36.57%
FIS
3.58%
ROE
AVGO
33.37%
FIS
2.6%
ROA
AVGO
10.66%
FIS
4.37%

Growth

Revenue Growth
AVGO
29.5%
FIS
8.2%
Earnings Growth
AVGO
31.6%
FIS
88.1%

Financial Health

Debt/Equity
AVGO
0.83
FIS
0.96
Current Ratio
AVGO
1.9
FIS
0.59
Quick Ratio
AVGO
1.67
FIS
0.44

Dividends

Dividend Yield
AVGO
0.74%
FIS
3.59%
Payout Ratio
AVGO
47.17%
FIS
219.18%

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)
FIS NEUTRAL

FIS presents a stark contrast between defensive valuation and growth potential. With a Piotroski F-Score of 4/9, the company's financial health is merely stable, while the current price of $45.73 trades at a significant premium to its Graham Number ($21.07) and Intrinsic Value ($21.54). While the forward P/E (6.63) and PEG (0.25) suggest deep value relative to growth, the unsustainable dividend payout ratio (219%) and a total lack of technical momentum (0/100) are critical concerns.

Strengths
Exceptional earnings growth (88.10% YoY)
Highly attractive Forward P/E of 6.63
Very low PEG ratio (0.25) indicating undervaluation relative to growth
Risks
Unsustainable dividend payout ratio of 219.18%
Poor short-term liquidity with a Current Ratio of 0.59
Severe long-term price erosion (-66.6% over 5 years)

Compare Another Pair

AVGO vs FIS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Fidelity National Information Services, Inc. (FIS) 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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