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AVGO vs NXT

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
NXT
Nextpower Inc.
NEUTRAL
Price
$110.12
Market Cap
$16.56B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
NXT
29.29
Forward P/E
AVGO
19.65
NXT
22.9
P/B Ratio
AVGO
20.79
NXT
7.6
P/S Ratio
AVGO
24.35
NXT
4.6
EV/EBITDA
AVGO
46.0
NXT
20.18

Profitability

Gross Margin
AVGO
76.73%
NXT
32.43%
Operating Margin
AVGO
44.94%
NXT
19.41%
Profit Margin
AVGO
36.57%
NXT
16.43%
ROE
AVGO
33.37%
NXT
33.17%
ROA
AVGO
10.66%
NXT
13.61%

Growth

Revenue Growth
AVGO
29.5%
NXT
33.9%
Earnings Growth
AVGO
31.6%
NXT
7.9%

Financial Health

Debt/Equity
AVGO
0.83
NXT
0.02
Current Ratio
AVGO
1.9
NXT
2.36
Quick Ratio
AVGO
1.67
NXT
1.98

Dividends

Dividend Yield
AVGO
0.74%
NXT
--
Payout Ratio
AVGO
47.17%
NXT
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)
NXT NEUTRAL

NXT exhibits a stable financial foundation with a Piotroski F-Score of 4/9 and an exceptionally clean balance sheet (Debt/Equity 0.02). However, the stock is trading at a significant premium, with a current price of $110.12 far exceeding both the Graham Number ($35.01) and the growth-based Intrinsic Value ($70.88). While revenue growth remains robust at 33.9%, the divergence between top-line growth and slower earnings growth (7.9%), coupled with aggressive insider selling, suggests the current valuation is unsustainable.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.02
Strong profitability metrics including an ROE of 33.17% and Operating Margin of 19.41%
Robust top-line momentum with 33.9% YoY revenue growth
Risks
Severe overvaluation relative to deterministic fair value models
High PEG ratio (2.93) indicating the price is too high relative to earnings growth
Strongly bearish insider sentiment with significant sales by the CEO and CFO

Compare Another Pair

AVGO vs NXT: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Nextpower Inc. (NXT) 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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