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AVGO vs PENG

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
PENG
Penguin Solutions, Inc.
NEUTRAL
Price
$26.09
Market Cap
$1.37B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
PENG
37.27
Forward P/E
AVGO
19.65
PENG
10.14
P/B Ratio
AVGO
20.79
PENG
3.38
P/S Ratio
AVGO
24.35
PENG
1.02
EV/EBITDA
AVGO
46.0
PENG
11.2

Profitability

Gross Margin
AVGO
76.73%
PENG
28.32%
Operating Margin
AVGO
44.94%
PENG
7.8%
Profit Margin
AVGO
36.57%
PENG
4.07%
ROE
AVGO
33.37%
PENG
9.59%
ROA
AVGO
10.66%
PENG
3.04%

Growth

Revenue Growth
AVGO
29.5%
PENG
-6.2%
Earnings Growth
AVGO
31.6%
PENG
544.4%

Financial Health

Debt/Equity
AVGO
0.83
PENG
0.83
Current Ratio
AVGO
1.9
PENG
2.1
Quick Ratio
AVGO
1.67
PENG
1.46

Dividends

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

PENG presents a complex profile with a stable Piotroski F-Score of 4/9 and a current price ($26.09) that significantly exceeds both its Graham Number ($11.02) and Intrinsic Value ($20.65). While the company exhibits explosive YoY earnings growth (544.40%) and a highly attractive Forward P/E of 10.14, these are contrasted by negative revenue growth (-6.20%) and bearish insider activity. The stock is currently trading at a growth premium, supported by strong analyst consensus but hindered by fundamental top-line contraction.

Strengths
Exceptional YoY earnings growth of 544.40%
Very attractive Forward P/E ratio of 10.14
Strong track record of earnings beats (3/4 last 4 quarters)
Risks
Negative YoY and Q/Q revenue growth indicating top-line struggle
Bearish insider sentiment with consistent officer selling
Current price is 23% above growth-based intrinsic value

Compare Another Pair

AVGO vs PENG: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Penguin Solutions, Inc. (PENG) 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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