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AVGO vs HPQ

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
HPQ
HP Inc.
NEUTRAL
Price
$19.76
Market Cap
$18.14B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
HPQ
7.48
Forward P/E
AVGO
19.65
HPQ
6.64
P/B Ratio
AVGO
20.79
HPQ
-23.66
P/S Ratio
AVGO
24.35
HPQ
0.32
EV/EBITDA
AVGO
46.0
HPQ
5.8

Profitability

Gross Margin
AVGO
76.73%
HPQ
20.25%
Operating Margin
AVGO
44.94%
HPQ
6.19%
Profit Margin
AVGO
36.57%
HPQ
4.46%
ROE
AVGO
33.37%
HPQ
--
ROA
AVGO
10.66%
HPQ
5.62%

Growth

Revenue Growth
AVGO
29.5%
HPQ
6.9%
Earnings Growth
AVGO
31.6%
HPQ
-1.7%

Financial Health

Debt/Equity
AVGO
0.83
HPQ
--
Current Ratio
AVGO
1.9
HPQ
0.76
Quick Ratio
AVGO
1.67
HPQ
0.4

Dividends

Dividend Yield
AVGO
0.74%
HPQ
6.07%
Payout Ratio
AVGO
47.17%
HPQ
44.25%

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)
HPQ NEUTRAL

HPQ presents as a classic value trap, characterized by a Piotroski F-Score of 4/9, indicating stable but mediocre financial health. While the valuation is superficially attractive with a P/E of 7.48 and a strong 6.07% dividend yield, the balance sheet is highly concerning, evidenced by a negative Price/Book ratio (-23.66) and poor liquidity (Current Ratio 0.76). The stock is currently trading at a slight premium to its growth-based intrinsic value of $18.48. Bearish insider activity and a 0/100 technical trend further suggest a lack of conviction in near-term growth.

Strengths
Very low P/E ratio (7.48) relative to sector
Attractive dividend yield of 6.07%
Sustainable dividend payout ratio (44.25%)
Risks
Negative shareholders' equity (indicated by P/B of -23.66)
Liquidity risk with a Quick Ratio of 0.40
Negative earnings growth (-1.70% YoY)

Compare Another Pair

AVGO vs HPQ: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and HP Inc. (HPQ) 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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