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AVGO vs GDDY

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
GDDY
GoDaddy Inc.
NEUTRAL
Price
$86.04
Market Cap
$11.47B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
GDDY
13.83
Forward P/E
AVGO
19.65
GDDY
7.32
P/B Ratio
AVGO
20.79
GDDY
53.91
P/S Ratio
AVGO
24.35
GDDY
2.32
EV/EBITDA
AVGO
46.0
GDDY
11.32

Profitability

Gross Margin
AVGO
76.73%
GDDY
63.61%
Operating Margin
AVGO
44.94%
GDDY
25.14%
Profit Margin
AVGO
36.57%
GDDY
17.67%
ROE
AVGO
33.37%
GDDY
192.9%
ROA
AVGO
10.66%
GDDY
8.75%

Growth

Revenue Growth
AVGO
29.5%
GDDY
6.8%
Earnings Growth
AVGO
31.6%
GDDY
31.7%

Financial Health

Debt/Equity
AVGO
0.83
GDDY
17.96
Current Ratio
AVGO
1.9
GDDY
0.61
Quick Ratio
AVGO
1.67
GDDY
0.41

Dividends

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

GDDY presents a stark dichotomy between attractive valuation and alarming financial leverage. The Piotroski F-Score of 4/9 indicates a stable but mediocre health profile, while the absence of an Altman Z-Score and a critical Current Ratio of 0.61 suggest significant liquidity risks. While the Forward P/E (7.32) and PEG (0.68) indicate deep value relative to earnings growth, this is heavily offset by a Debt/Equity ratio of 17.96 and a bearish technical trend. The massive divergence between the Graham Number ($14.95) and Intrinsic Value ($183.49) highlights a company with minimal tangible book value but strong growth-based cash flow potential.

Strengths
Extremely attractive Forward P/E of 7.32
Strong PEG ratio (0.68) indicating undervaluation relative to growth
Robust earnings growth (YoY 31.70%)
Risks
Extreme leverage with a Debt/Equity ratio of 17.96
Poor short-term liquidity (Current Ratio 0.61, Quick Ratio 0.41)
Aggressive insider selling, including the CEO and CFO

Compare Another Pair

AVGO vs GDDY: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and GoDaddy Inc. (GDDY) 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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