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AVGO vs LITE

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
LITE
Lumentum Holdings Inc.
BEARISH
Price
$897.30
Market Cap
$64.07B
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
AVGO
68.48
LITE
263.14
Forward P/E
AVGO
19.65
LITE
56.65
P/B Ratio
AVGO
20.79
LITE
75.68
P/S Ratio
AVGO
24.35
LITE
30.43
EV/EBITDA
AVGO
46.0
LITE
247.42

Profitability

Gross Margin
AVGO
76.73%
LITE
37.12%
Operating Margin
AVGO
44.94%
LITE
10.73%
Profit Margin
AVGO
36.57%
LITE
11.95%
ROE
AVGO
33.37%
LITE
29.28%
ROA
AVGO
10.66%
LITE
0.29%

Growth

Revenue Growth
AVGO
29.5%
LITE
65.5%
Earnings Growth
AVGO
31.6%
LITE
--

Financial Health

Debt/Equity
AVGO
0.83
LITE
3.92
Current Ratio
AVGO
1.9
LITE
0.61
Quick Ratio
AVGO
1.67
LITE
0.41

Dividends

Dividend Yield
AVGO
0.74%
LITE
--
Payout Ratio
AVGO
47.17%
LITE
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)
LITE BEARISH

LITE exhibits a dangerous divergence between explosive growth and fundamental valuation. While the Piotroski F-Score of 4/9 indicates stable health, the company's valuation is completely detached from reality, trading at $897.30 against a Graham Number of $30.16 and an Intrinsic Value of $23.87. Severe liquidity risks are evident with a Current Ratio of 0.61 and a high Debt/Equity ratio of 3.92. Despite massive YoY EPS growth, the P/E of 263.14 and aggressive insider selling suggest a parabolic bubble nearing a correction.

Strengths
Explosive Revenue Growth (65.50% YoY)
Massive Year-over-Year EPS Growth (+297.6%)
Strong ROE of 29.28%
Risks
Extreme Valuation (P/E 263.14, P/B 75.68)
Poor Liquidity (Current Ratio 0.61, Quick Ratio 0.41)
High Leverage (Debt/Equity 3.92)

Compare Another Pair

AVGO vs LITE: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Lumentum Holdings Inc. (LITE) 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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