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AVGO vs MPWR

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
MPWR
Monolithic Power Systems, Inc.
NEUTRAL
Price
$1363.42
Market Cap
$66.97B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
MPWR
106.35
Forward P/E
AVGO
19.65
MPWR
52.6
P/B Ratio
AVGO
20.79
MPWR
18.81
P/S Ratio
AVGO
24.35
MPWR
24.0
EV/EBITDA
AVGO
46.0
MPWR
84.15

Profitability

Gross Margin
AVGO
76.73%
MPWR
55.18%
Operating Margin
AVGO
44.94%
MPWR
26.62%
Profit Margin
AVGO
36.57%
MPWR
22.27%
ROE
AVGO
33.37%
MPWR
19.17%
ROA
AVGO
10.66%
MPWR
11.81%

Growth

Revenue Growth
AVGO
29.5%
MPWR
20.8%
Earnings Growth
AVGO
31.6%
MPWR
-86.2%

Financial Health

Debt/Equity
AVGO
0.83
MPWR
0.01
Current Ratio
AVGO
1.9
MPWR
5.91
Quick Ratio
AVGO
1.67
MPWR
4.09

Dividends

Dividend Yield
AVGO
0.74%
MPWR
0.59%
Payout Ratio
AVGO
47.17%
MPWR
48.52%

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)
MPWR NEUTRAL

MPWR demonstrates exceptional operational health with a Piotroski F-Score of 7/9 and a nearly debt-free balance sheet (Debt/Equity 0.01). However, there is a massive disconnect between the current market price ($1363.42) and deterministic value markers, specifically the Graham Number ($144.61) and Intrinsic Value ($89.74). While the company maintains a stellar 25-quarter earnings beat record and strong revenue growth, the valuation is extreme (P/E 106.35, P/S 24.00). This fundamental strength is currently offset by heavy insider selling and a sharply bearish technical trend, suggesting the stock is significantly overextended.

Strengths
Fortress balance sheet with negligible debt (Debt/Equity 0.01)
Strong deterministic health (Piotroski F-Score 7/9)
Exceptional earnings consistency with 25 consecutive quarters of beats
Risks
Extreme valuation premium (Price is ~9x the Graham Number)
Aggressive insider liquidation ($335.82M sold, 0 bought)
Bearish technical momentum (Technical Trend score 10/100)

Compare Another Pair

AVGO vs MPWR: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Monolithic Power Systems, Inc. (MPWR) 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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