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AVGO vs FTV

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
FTV
Fortive Corporation
BEARISH
Price
$61.09
Market Cap
$18.81B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
FTV
38.42
Forward P/E
AVGO
19.65
FTV
19.15
P/B Ratio
AVGO
20.79
FTV
2.97
P/S Ratio
AVGO
24.35
FTV
4.52
EV/EBITDA
AVGO
46.0
FTV
18.78

Profitability

Gross Margin
AVGO
76.73%
FTV
63.5%
Operating Margin
AVGO
44.94%
FTV
20.12%
Profit Margin
AVGO
36.57%
FTV
13.93%
ROE
AVGO
33.37%
FTV
6.4%
ROA
AVGO
10.66%
FTV
3.13%

Growth

Revenue Growth
AVGO
29.5%
FTV
4.6%
Earnings Growth
AVGO
31.6%
FTV
-2.6%

Financial Health

Debt/Equity
AVGO
0.83
FTV
0.51
Current Ratio
AVGO
1.9
FTV
0.71
Quick Ratio
AVGO
1.67
FTV
0.54

Dividends

Dividend Yield
AVGO
0.74%
FTV
0.43%
Payout Ratio
AVGO
47.17%
FTV
17.61%

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)
FTV BEARISH

FTV exhibits a severe valuation disconnect, trading at $61.09 despite a Graham Number of $27.14 and an Intrinsic Value of $11.13. The Piotroski F-Score of 4/9 indicates only stable health, which is further undermined by a concerning current ratio of 0.71, signaling potential liquidity constraints. While the PEG ratio of 0.98 suggests growth potential, the recent Q/Q revenue collapse of -30.72% and bearish insider activity create a high-risk profile. The stock is currently priced at a massive premium that is not supported by its deterministic health or value scores.

Strengths
Strong gross margins at 63.50%
Consistent historical track record of beating earnings estimates over 25 quarters
Attractive PEG ratio (0.98) suggesting growth is priced reasonably relative to earnings
Risks
Severe Q/Q revenue contraction of -30.72%
Poor short-term liquidity with a Current Ratio of 0.71 and Quick Ratio of 0.54
Extreme premium to Graham Number ($27.14) and Intrinsic Value ($11.13)

Compare Another Pair

AVGO vs FTV: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Fortive Corporation (FTV) 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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