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AVGO vs QLYS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
QLYS
Qualys, Inc.
NEUTRAL
Price
$83.17
Market Cap
$2.98B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
QLYS
15.46
Forward P/E
AVGO
19.65
QLYS
10.42
P/B Ratio
AVGO
20.79
QLYS
5.3
P/S Ratio
AVGO
24.35
QLYS
4.46
EV/EBITDA
AVGO
46.0
QLYS
10.88

Profitability

Gross Margin
AVGO
76.73%
QLYS
82.85%
Operating Margin
AVGO
44.94%
QLYS
33.57%
Profit Margin
AVGO
36.57%
QLYS
29.64%
ROE
AVGO
33.37%
QLYS
38.2%
ROA
AVGO
10.66%
QLYS
13.41%

Growth

Revenue Growth
AVGO
29.5%
QLYS
10.1%
Earnings Growth
AVGO
31.6%
QLYS
23.6%

Financial Health

Debt/Equity
AVGO
0.83
QLYS
0.09
Current Ratio
AVGO
1.9
QLYS
1.41
Quick Ratio
AVGO
1.67
QLYS
1.32

Dividends

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

Qualys exhibits a dichotomy between strong fundamental health and severe market pessimism. The Piotroski F-Score of 4/9 indicates a stable financial condition, supported by an exceptionally low Debt/Equity ratio (0.09) and high gross margins (82.85%). While the stock is trading significantly below its growth-based intrinsic value ($160.48) and carries an attractive forward P/E of 10.42, this is offset by a bearish technical trend (0/100) and consistent insider selling. The company is a high-quality operator currently trapped in a valuation reset.

Strengths
Exceptional gross margins of 82.85% indicating strong pricing power
Very low leverage with a Debt/Equity ratio of 0.09
Consistent earnings track record with beats in 3 of the last 4 quarters
Risks
Severe technical breakdown with a 31.1% decline over the last year
Bearish insider sentiment with 15 sell transactions and 0 buys
High PEG ratio (3.91) suggesting growth may not justify current multiples

Compare Another Pair

AVGO vs QLYS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Qualys, Inc. (QLYS) 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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