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AVGO vs JKHY

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
JKHY
Jack Henry & Associates, Inc.
BULLISH
Price
$147.20
Market Cap
$10.65B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
JKHY
21.09
Forward P/E
AVGO
19.65
JKHY
21.05
P/B Ratio
AVGO
20.79
JKHY
4.82
P/S Ratio
AVGO
24.35
JKHY
4.32
EV/EBITDA
AVGO
46.0
JKHY
15.31

Profitability

Gross Margin
AVGO
76.73%
JKHY
43.84%
Operating Margin
AVGO
44.94%
JKHY
25.7%
Profit Margin
AVGO
36.57%
JKHY
20.59%
ROE
AVGO
33.37%
JKHY
24.28%
ROA
AVGO
10.66%
JKHY
13.35%

Growth

Revenue Growth
AVGO
29.5%
JKHY
7.9%
Earnings Growth
AVGO
31.6%
JKHY
28.4%

Financial Health

Debt/Equity
AVGO
0.83
JKHY
0.03
Current Ratio
AVGO
1.9
JKHY
1.6
Quick Ratio
AVGO
1.67
JKHY
0.95

Dividends

Dividend Yield
AVGO
0.74%
JKHY
1.6%
Payout Ratio
AVGO
47.17%
JKHY
33.29%

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)
JKHY BULLISH

JKHY exhibits exceptional fundamental strength, highlighted by a Piotroski F-Score of 8/9 and a near-zero Debt/Equity ratio of 0.03. While the technical trend is currently bearish (0/100) and the stock is trading well above its defensive Graham Number ($69.24), it remains significantly undervalued relative to its growth-based intrinsic value of $205.91. The company's track record of beating earnings estimates over 25 consecutive quarters provides high confidence in its operational execution. The current price dip represents a compelling entry point for long-term investors despite short-term momentum headwinds.

Strengths
Exceptional financial health with a Piotroski F-Score of 8/9
Negligible leverage with a Debt/Equity ratio of 0.03
Remarkable earnings consistency with beats in nearly all of the last 25 quarters
Risks
Severe bearish technical momentum (Technical Trend score of 0/100)
Bearish insider sentiment with $3.53M in net selling and zero buys
Modest top-line revenue growth (7.9% YoY) compared to earnings growth

Compare Another Pair

AVGO vs JKHY: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Jack Henry & Associates, Inc. (JKHY) 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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