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AVGO vs OSIS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
OSIS
OSI Systems, Inc.
BEARISH
Price
$305.90
Market Cap
$5.19B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
OSIS
33.69
Forward P/E
AVGO
19.65
OSIS
26.6
P/B Ratio
AVGO
20.79
OSIS
5.95
P/S Ratio
AVGO
24.35
OSIS
2.89
EV/EBITDA
AVGO
46.0
OSIS
21.66

Profitability

Gross Margin
AVGO
76.73%
OSIS
33.0%
Operating Margin
AVGO
44.94%
OSIS
13.29%
Profit Margin
AVGO
36.57%
OSIS
8.52%
ROE
AVGO
33.37%
OSIS
18.32%
ROA
AVGO
10.66%
OSIS
6.02%

Growth

Revenue Growth
AVGO
29.5%
OSIS
10.5%
Earnings Growth
AVGO
31.6%
OSIS
0.0%

Financial Health

Debt/Equity
AVGO
0.83
OSIS
1.24
Current Ratio
AVGO
1.9
OSIS
3.15
Quick Ratio
AVGO
1.67
OSIS
2.19

Dividends

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

OSIS exhibits a significant valuation disconnect, trading at $305.90 despite a Graham Number of $102.47 and an Intrinsic Value of $63.56. While the Piotroski F-Score of 4/9 indicates stable financial health and the company maintains a strong current ratio (3.15), the fundamental growth does not justify the current premium. Flat year-over-year earnings growth (0.00%) combined with bearish insider selling and a deteriorating technical trend suggests the stock is currently overextended.

Strengths
Strong Return on Equity (ROE) of 18.33%
Excellent short-term liquidity with a Current Ratio of 3.15
Consistent historical track record of earnings beats over 25 quarters
Risks
Extreme overvaluation relative to Graham and Intrinsic value baselines
Stagnant YoY earnings growth (0.00%) despite revenue increases
Bearish insider sentiment with $11.27M in sales and zero buys

Compare Another Pair

AVGO vs OSIS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and OSI Systems, Inc. (OSIS) 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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