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AVGO vs POWI

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
POWI
Power Integrations, Inc.
NEUTRAL
Price
$56.05
Market Cap
$3.11B
Sector
Technology
AI Confidence
90%

Valuation

P/E Ratio
AVGO
68.48
POWI
143.72
Forward P/E
AVGO
19.65
POWI
30.44
P/B Ratio
AVGO
20.79
POWI
4.61
P/S Ratio
AVGO
24.35
POWI
7.01
EV/EBITDA
AVGO
46.0
POWI
58.17

Profitability

Gross Margin
AVGO
76.73%
POWI
54.49%
Operating Margin
AVGO
44.94%
POWI
19.45%
Profit Margin
AVGO
36.57%
POWI
4.98%
ROE
AVGO
33.37%
POWI
3.11%
ROA
AVGO
10.66%
POWI
1.68%

Growth

Revenue Growth
AVGO
29.5%
POWI
-1.9%
Earnings Growth
AVGO
31.6%
POWI
44.7%

Financial Health

Debt/Equity
AVGO
0.83
POWI
0.03
Current Ratio
AVGO
1.9
POWI
6.51
Quick Ratio
AVGO
1.67
POWI
3.84

Dividends

Dividend Yield
AVGO
0.74%
POWI
1.53%
Payout Ratio
AVGO
47.17%
POWI
215.38%

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)
POWI NEUTRAL

POWI exhibits exceptional financial health with a Piotroski F-Score of 8/9 and a near-zero debt-to-equity ratio (0.03), indicating a fortress balance sheet. However, the stock is severely overvalued relative to deterministic baselines, trading at $56.05 against a Graham Number of $10.33 and an Intrinsic Value of $11.51. While forward P/E (30.44) suggests a recovery in earnings power, the current dividend payout ratio of 215.38% is unsustainable. The divergence between strong internal health and poor valuation/insider sentiment results in a neutral outlook.

Strengths
Strong Piotroski F-Score (8/9) indicating high operational efficiency
Exceptional liquidity with a Current Ratio of 6.51
Negligible debt burden (Debt/Equity 0.03)
Risks
Extreme valuation premium (Price is ~5x the Graham Number)
Unsustainable dividend payout ratio (215.38%)
Negative revenue growth (-1.90% YoY) suggesting stagnation in top-line demand

Compare Another Pair

AVGO vs POWI: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Power Integrations, Inc. (POWI) 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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