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AVGO vs LGL

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
LGL
The LGL Group, Inc.
BEARISH
Price
$7.28
Market Cap
$47.6M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
LGL
66.14
Forward P/E
AVGO
19.65
LGL
31.63
P/B Ratio
AVGO
20.79
LGL
1.03
P/S Ratio
AVGO
24.35
LGL
11.41
EV/EBITDA
AVGO
46.0
LGL
29.64

Profitability

Gross Margin
AVGO
76.73%
LGL
72.3%
Operating Margin
AVGO
44.94%
LGL
9.76%
Profit Margin
AVGO
36.57%
LGL
16.5%
ROE
AVGO
33.37%
LGL
1.74%
ROA
AVGO
10.66%
LGL
0.35%

Growth

Revenue Growth
AVGO
29.5%
LGL
5.4%
Earnings Growth
AVGO
31.6%
LGL
--

Financial Health

Debt/Equity
AVGO
0.83
LGL
0.01
Current Ratio
AVGO
1.9
LGL
50.63
Quick Ratio
AVGO
1.67
LGL
50.02

Dividends

Dividend Yield
AVGO
0.74%
LGL
--
Payout Ratio
AVGO
47.17%
LGL
0.0%

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)
LGL BEARISH

LGL exhibits significant fundamental weakness, highlighted by a weak Piotroski F-Score of 3/9 and a current price ($7.28) that trades at a massive premium to both its Graham Number ($4.19) and Intrinsic Value ($0.77). While the company maintains an exceptionally clean balance sheet with virtually no debt and extreme liquidity, its operational efficiency is poor, evidenced by very low ROE (1.74%) and a dismal earnings track record. The stock appears to be priced for growth that is not supported by its current 5.4% revenue growth or its consistent failure to meet earnings estimates.

Strengths
Exceptional gross margins of 72.30%
Virtually debt-free with a Debt/Equity ratio of 0.01
Extreme short-term liquidity (Current Ratio of 50.63)
Risks
Severe overvaluation relative to intrinsic value ($0.77) and Graham Number ($4.19)
Consistent earnings misses (0/4 beats in the last 4 quarters)
Very poor capital efficiency (ROE of 1.74% and ROA of 0.35%)

Compare Another Pair

AVGO vs LGL: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and The LGL Group, Inc. (LGL) 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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