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AVGO vs PTRN

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
PTRN
Pattern Group Inc.
NEUTRAL
Price
$13.53
Market Cap
$2.69B
Sector
Technology
AI Confidence
75%

Valuation

P/E Ratio
AVGO
68.48
PTRN
--
Forward P/E
AVGO
19.65
PTRN
23.01
P/B Ratio
AVGO
20.79
PTRN
4.11
P/S Ratio
AVGO
24.35
PTRN
1.07
EV/EBITDA
AVGO
46.0
PTRN
50.61

Profitability

Gross Margin
AVGO
76.73%
PTRN
43.59%
Operating Margin
AVGO
44.94%
PTRN
3.6%
Profit Margin
AVGO
36.57%
PTRN
0.65%
ROE
AVGO
33.37%
PTRN
3.38%
ROA
AVGO
10.66%
PTRN
1.97%

Growth

Revenue Growth
AVGO
29.5%
PTRN
40.3%
Earnings Growth
AVGO
31.6%
PTRN
24.4%

Financial Health

Debt/Equity
AVGO
0.83
PTRN
0.05
Current Ratio
AVGO
1.9
PTRN
2.34
Quick Ratio
AVGO
1.67
PTRN
1.38

Dividends

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

PTRN presents a stark contrast between strong growth metrics and poor operational health, as evidenced by a weak Piotroski F-Score of 2/9. While the company exhibits impressive YoY revenue growth of 40.30% and a reasonable Forward P/E of 23.01, its net profit margins are razor-thin at 0.65%. The balance sheet is clean with very low debt (D/E 0.05) and strong liquidity (Current Ratio 2.34), but the lack of operational efficiency drags down the deterministic health scores. The stock is currently viewed as a speculative growth play with a significant gap between its current price and analyst targets.

Strengths
Strong top-line growth with 40.30% YoY revenue increase
Very low leverage with a Debt/Equity ratio of 0.05
Strong short-term liquidity indicated by a Current Ratio of 2.34
Risks
Critically low Piotroski F-Score (2/9) indicating poor financial trend health
Extremely thin net profit margins (0.65%) leaving little room for error
Bearish technical trend (0/100) despite recent short-term gains

Compare Another Pair

AVGO vs PTRN: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Pattern Group Inc. (PTRN) 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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