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AVGO vs LPL

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
LPL
LG Display Co., Ltd.
BEARISH
Price
$4.12
Market Cap
$4.12B
Sector
Technology
AI Confidence
95%

Valuation

P/E Ratio
AVGO
68.48
LPL
27.47
Forward P/E
AVGO
19.65
LPL
38.9
P/B Ratio
AVGO
20.79
LPL
0.92
P/S Ratio
AVGO
24.35
LPL
0.0
EV/EBITDA
AVGO
46.0
LPL
3.02

Profitability

Gross Margin
AVGO
76.73%
LPL
13.45%
Operating Margin
AVGO
44.94%
LPL
2.65%
Profit Margin
AVGO
36.57%
LPL
-0.32%
ROE
AVGO
33.37%
LPL
--
ROA
AVGO
10.66%
LPL
--

Growth

Revenue Growth
AVGO
29.5%
LPL
-8.8%
Earnings Growth
AVGO
31.6%
LPL
--

Financial Health

Debt/Equity
AVGO
0.83
LPL
1.62
Current Ratio
AVGO
1.9
LPL
--
Quick Ratio
AVGO
1.67
LPL
--

Dividends

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

LPL exhibits severe financial distress, highlighted by a critical Piotroski F-Score of 1/9 and a total lack of dividend strength. The company is struggling with negative revenue growth (-8.80% YoY) and catastrophic earnings declines, with a recent Q/Q EPS growth of -2300%. While the stock trades slightly below book value (P/B 0.92), it is priced significantly above its intrinsic value of $1.05 and its Graham Number of $3.88. The combination of high leverage (Debt/Equity 1.62) and a purely bearish technical trend suggests a high risk of further devaluation.

Strengths
Price-to-Book ratio of 0.92 suggests the stock is trading near its liquidation value
Operating margin remains slightly positive at 2.65%
Analyst target price ($4.42) is slightly above current market price
Risks
Severe financial instability indicated by Piotroski F-Score of 1/9
High leverage with a Debt/Equity ratio of 1.62
Consistent earnings misses with an average surprise of -136.65% over the last 4 quarters

Compare Another Pair

AVGO vs LPL: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and LG Display Co., Ltd. (LPL) 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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