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AVGO vs GCTS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
GCTS
GCT Semiconductor Holding, Inc.
BEARISH
Price
$1.35
Market Cap
$97.9M
Sector
Technology
AI Confidence
95%

Valuation

P/E Ratio
AVGO
68.48
GCTS
--
Forward P/E
AVGO
19.65
GCTS
90.0
P/B Ratio
AVGO
20.79
GCTS
-0.94
P/S Ratio
AVGO
24.35
GCTS
34.15
EV/EBITDA
AVGO
46.0
GCTS
-4.49

Profitability

Gross Margin
AVGO
76.73%
GCTS
-63.4%
Operating Margin
AVGO
44.94%
GCTS
-1577.05%
Profit Margin
AVGO
36.57%
GCTS
0.0%
ROE
AVGO
33.37%
GCTS
--
ROA
AVGO
10.66%
GCTS
-128.51%

Growth

Revenue Growth
AVGO
29.5%
GCTS
-57.5%
Earnings Growth
AVGO
31.6%
GCTS
--

Financial Health

Debt/Equity
AVGO
0.83
GCTS
--
Current Ratio
AVGO
1.9
GCTS
0.15
Quick Ratio
AVGO
1.67
GCTS
0.11

Dividends

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

GCTS exhibits critical financial distress, highlighted by a Piotroski F-Score of 1/9 and a catastrophic Current Ratio of 0.15, indicating a severe liquidity crisis. The company is operating with negative gross margins (-63.40%) and collapsing revenue growth (-57.50% YoY), suggesting a fundamental failure in its business model. With a negative Price-to-Book ratio (-0.94), the company has effectively wiped out its equity. Despite a 'strong_buy' analyst consensus, the deterministic data points toward a high risk of insolvency.

Strengths
Strong analyst target price ($3.47) relative to current price
Recent short-term price momentum (+3.9% over 1 week)
Small market cap allows for high volatility spikes
Risks
Severe liquidity risk with a Current Ratio of 0.15
Negative gross margins indicating products cost more to make than they sell for
Rapid revenue contraction (-57.5% YoY)

Compare Another Pair

AVGO vs GCTS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and GCT Semiconductor Holding, Inc. (GCTS) 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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