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AVGO vs III

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
III
Information Services Group, Inc.
BEARISH
Price
$3.94
Market Cap
$188.7M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
III
20.74
Forward P/E
AVGO
19.65
III
9.27
P/B Ratio
AVGO
20.79
III
1.99
P/S Ratio
AVGO
24.35
III
0.77
EV/EBITDA
AVGO
46.0
III
10.29

Profitability

Gross Margin
AVGO
76.73%
III
43.07%
Operating Margin
AVGO
44.94%
III
8.28%
Profit Margin
AVGO
36.57%
III
3.82%
ROE
AVGO
33.37%
III
9.78%
ROA
AVGO
10.66%
III
5.35%

Growth

Revenue Growth
AVGO
29.5%
III
5.9%
Earnings Growth
AVGO
31.6%
III
-12.2%

Financial Health

Debt/Equity
AVGO
0.83
III
0.74
Current Ratio
AVGO
1.9
III
2.34
Quick Ratio
AVGO
1.67
III
2.19

Dividends

Dividend Yield
AVGO
0.74%
III
4.57%
Payout Ratio
AVGO
47.17%
III
94.74%

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)
III BEARISH

III presents a stable financial health profile with a Piotroski F-Score of 6/9, but is fundamentally undermined by poor valuation and negative momentum. The stock trades at a significant premium to both its Graham Number ($2.91) and Intrinsic Value ($1.33), while exhibiting a bearish technical trend (0/100). Critical concerns include a nearly unsustainable dividend payout ratio of 94.74% and aggressive insider selling by the CEO and major shareholders. Despite a low PEG ratio and optimistic analyst targets, the combination of declining earnings growth and insider divestment suggests limited upside.

Strengths
Stable financial health (Piotroski F-Score 6/9)
Strong liquidity with a Current Ratio of 2.34
Low Price-to-Sales ratio (0.77) suggesting revenue is not overvalued
Risks
Unsustainable dividend payout ratio (94.74%) posing a high risk of dividend cuts
Negative earnings growth (YoY -12.20%, Q/Q -14.10%)
Heavy insider selling, including the CEO and 10% owners

Compare Another Pair

AVGO vs III: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Information Services Group, Inc. (III) 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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