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AVGO vs GRMN

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
GRMN
Garmin Ltd.
NEUTRAL
Price
$257.33
Market Cap
$49.63B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
GRMN
29.96
Forward P/E
AVGO
19.65
GRMN
25.23
P/B Ratio
AVGO
20.79
GRMN
5.52
P/S Ratio
AVGO
24.35
GRMN
6.85
EV/EBITDA
AVGO
46.0
GRMN
22.76

Profitability

Gross Margin
AVGO
76.73%
GRMN
58.74%
Operating Margin
AVGO
44.94%
GRMN
28.9%
Profit Margin
AVGO
36.57%
GRMN
22.96%
ROE
AVGO
33.37%
GRMN
19.78%
ROA
AVGO
10.66%
GRMN
11.37%

Growth

Revenue Growth
AVGO
29.5%
GRMN
16.6%
Earnings Growth
AVGO
31.6%
GRMN
21.2%

Financial Health

Debt/Equity
AVGO
0.83
GRMN
0.02
Current Ratio
AVGO
1.9
GRMN
3.63
Quick Ratio
AVGO
1.67
GRMN
2.33

Dividends

Dividend Yield
AVGO
0.74%
GRMN
1.63%
Payout Ratio
AVGO
47.17%
GRMN
40.16%

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)
GRMN NEUTRAL

Garmin exhibits strong fundamental health with a Piotroski F-Score of 7/9 and an exceptionally clean balance sheet (Debt/Equity of 0.02). While the stock is trading significantly above its defensive Graham Number ($94.88), it aligns closely with its growth-based intrinsic value of $253.41. However, the bullish fundamental profile is countered by a bearish technical trend (10/100) and significant insider selling by the CEO and CFO. The high PEG ratio of 3.37 suggests the market has already priced in much of the current growth, leaving little margin of safety for new investors.

Strengths
Exceptional financial health with near-zero debt (Debt/Equity 0.02)
Strong profitability margins (Gross Margin 58.74%, Operating Margin 28.90%)
Consistent earnings track record with frequent beats over 25 quarters
Risks
High valuation relative to growth (PEG Ratio 3.37)
Bearish insider sentiment with multiple sales from C-suite executives
Strongly bearish technical trend (10/100)

Compare Another Pair

AVGO vs GRMN: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Garmin Ltd. (GRMN) 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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