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AVGO vs LDOS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
LDOS
Leidos Holdings, Inc.
NEUTRAL
Price
$146.15
Market Cap
$18.47B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
LDOS
13.12
Forward P/E
AVGO
19.65
LDOS
11.09
P/B Ratio
AVGO
20.79
LDOS
3.76
P/S Ratio
AVGO
24.35
LDOS
1.08
EV/EBITDA
AVGO
46.0
LDOS
9.52

Profitability

Gross Margin
AVGO
76.73%
LDOS
18.05%
Operating Margin
AVGO
44.94%
LDOS
11.24%
Profit Margin
AVGO
36.57%
LDOS
8.43%
ROE
AVGO
33.37%
LDOS
31.03%
ROA
AVGO
10.66%
LDOS
9.9%

Growth

Revenue Growth
AVGO
29.5%
LDOS
-3.6%
Earnings Growth
AVGO
31.6%
LDOS
19.7%

Financial Health

Debt/Equity
AVGO
0.83
LDOS
1.08
Current Ratio
AVGO
1.9
LDOS
1.7
Quick Ratio
AVGO
1.67
LDOS
1.35

Dividends

Dividend Yield
AVGO
0.74%
LDOS
1.14%
Payout Ratio
AVGO
47.17%
LDOS
14.63%

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)
LDOS NEUTRAL

Leidos (LDOS) presents a complex profile with a Piotroski F-Score of 4/9, indicating stable but not strong financial health. While the company exhibits exceptional profitability with an ROE of 31.03% and a low P/E of 13.12, it is currently battling negative revenue growth (-3.60%) and a severe bearish technical trend (0/100). The significant gap between the Graham Number ($98.74) and the growth-based Intrinsic Value ($328.63) suggests the market is struggling to price the company's transition from revenue expansion to margin optimization. Despite consistent earnings beats, the combination of insider selling and negative top-line growth warrants a neutral stance.

Strengths
Strong profitability with ROE at 31.03% and ROA at 9.90%
Attractive valuation with a P/E of 13.12 and Forward P/E of 11.09
Exceptional earnings track record with consistent beats over 25 quarters
Risks
Negative YoY and Q/Q revenue growth (-3.60%)
Severe bearish technical momentum (0/100 trend score)
High PEG ratio (2.46) suggesting overvaluation relative to current growth rates

Compare Another Pair

AVGO vs LDOS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Leidos Holdings, Inc. (LDOS) 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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