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AVGO vs PLXS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
PLXS
Plexus Corp.
NEUTRAL
Price
$222.88
Market Cap
$5.97B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
PLXS
34.61
Forward P/E
AVGO
19.65
PLXS
25.84
P/B Ratio
AVGO
20.79
PLXS
4.02
P/S Ratio
AVGO
24.35
PLXS
1.45
EV/EBITDA
AVGO
46.0
PLXS
20.59

Profitability

Gross Margin
AVGO
76.73%
PLXS
9.98%
Operating Margin
AVGO
44.94%
PLXS
5.07%
Profit Margin
AVGO
36.57%
PLXS
4.28%
ROE
AVGO
33.37%
PLXS
12.63%
ROA
AVGO
10.66%
PLXS
4.19%

Growth

Revenue Growth
AVGO
29.5%
PLXS
9.6%
Earnings Growth
AVGO
31.6%
PLXS
12.7%

Financial Health

Debt/Equity
AVGO
0.83
PLXS
0.13
Current Ratio
AVGO
1.9
PLXS
1.59
Quick Ratio
AVGO
1.67
PLXS
0.7

Dividends

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

PLXS exhibits exceptional financial health with a perfect Piotroski F-Score of 9/9 and a very low Debt/Equity ratio of 0.13. However, the stock is significantly overvalued, trading at $222.88, which is well above both its Graham Number ($89.63) and its growth-based Intrinsic Value ($167.76). While the earnings track record is stellar with consistent beats over 25 quarters, bearish insider sentiment and a weak technical trend suggest a potential price correction. The disconnect between the 'Buy' analyst recommendation and a target price ($200.80) that is lower than the current market price further supports a cautious stance.

Strengths
Perfect Piotroski F-Score (9/9) indicating peak financial health
Extremely low leverage with a Debt/Equity ratio of 0.13
Consistent history of earnings beats over 25 quarters
Risks
Significant valuation premium over intrinsic value ($222.88 vs $167.76)
Bearish insider activity with 13 sell transactions and 0 buys
Very weak technical trend score (10/100)

Compare Another Pair

AVGO vs PLXS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Plexus Corp. (PLXS) 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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