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AVGO vs OOMA

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
OOMA
Ooma, Inc.
BEARISH
Price
$16.32
Market Cap
$448.4M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
OOMA
70.96
Forward P/E
AVGO
19.65
OOMA
11.41
P/B Ratio
AVGO
20.79
OOMA
4.84
P/S Ratio
AVGO
24.35
OOMA
1.64
EV/EBITDA
AVGO
46.0
OOMA
29.72

Profitability

Gross Margin
AVGO
76.73%
OOMA
61.13%
Operating Margin
AVGO
44.94%
OOMA
4.22%
Profit Margin
AVGO
36.57%
OOMA
2.36%
ROE
AVGO
33.37%
OOMA
7.25%
ROA
AVGO
10.66%
OOMA
1.95%

Growth

Revenue Growth
AVGO
29.5%
OOMA
14.6%
Earnings Growth
AVGO
31.6%
OOMA
--

Financial Health

Debt/Equity
AVGO
0.83
OOMA
0.79
Current Ratio
AVGO
1.9
OOMA
0.93
Quick Ratio
AVGO
1.67
OOMA
0.45

Dividends

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

OOMA exhibits a stable but mediocre Piotroski F-Score of 4/9, while its current price of $16.32 trades at a massive premium compared to its Graham Number ($4.18) and Intrinsic Value ($1.61). Despite strong short-term price momentum and consistent earnings beats, the company faces significant liquidity risks with a Current Ratio of 0.93 and a Quick Ratio of 0.45. Fundamental deterioration is evident in the negative YoY EPS growth (-33.3%) and bearish insider activity from the CEO and CFO. The extreme P/E ratio of 70.96 suggests the stock is heavily overvalued based on current earnings power.

Strengths
Strong gross margins of 61.13%
Consistent track record of beating quarterly earnings estimates
Positive YoY revenue growth of 14.60%
Risks
Severe valuation gap between market price and defensive fair value (Graham Number)
Liquidity concerns with a Current Ratio below 1.0 (0.93)
Negative earnings growth trends (YoY EPS down 33.3%)

Compare Another Pair

AVGO vs OOMA: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Ooma, Inc. (OOMA) 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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