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AVGO vs RDWR

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
RDWR
Radware Ltd.
NEUTRAL
Price
$25.76
Market Cap
$1.12B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
RDWR
57.24
Forward P/E
AVGO
19.65
RDWR
19.75
P/B Ratio
AVGO
20.79
RDWR
3.19
P/S Ratio
AVGO
24.35
RDWR
3.71
EV/EBITDA
AVGO
46.0
RDWR
38.98

Profitability

Gross Margin
AVGO
76.73%
RDWR
80.67%
Operating Margin
AVGO
44.94%
RDWR
4.13%
Profit Margin
AVGO
36.57%
RDWR
6.71%
ROE
AVGO
33.37%
RDWR
5.42%
ROA
AVGO
10.66%
RDWR
1.08%

Growth

Revenue Growth
AVGO
29.5%
RDWR
9.9%
Earnings Growth
AVGO
31.6%
RDWR
123.2%

Financial Health

Debt/Equity
AVGO
0.83
RDWR
0.04
Current Ratio
AVGO
1.9
RDWR
1.63
Quick Ratio
AVGO
1.67
RDWR
1.5

Dividends

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

RDWR presents a dichotomy between fundamental health and valuation. While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, the company boasts a pristine balance sheet with negligible debt (D/E 0.04) and exceptional gross margins (80.67%). However, the stock trades at a significant premium to its Graham Number ($9.04) and Intrinsic Value ($13.28), with a PEG ratio of 22.79 suggesting extreme overvaluation relative to current growth. The bullish case rests on explosive earnings growth (123% YoY) and a reasonable forward P/E of 19.75, but bearish technicals and weak insider sentiment temper the outlook.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.04
High gross margins (80.67%) indicating strong pricing power or low COGS
Explosive earnings growth (123.20% YoY) and consistent EPS beats
Risks
Significant valuation gap between current price ($25.76) and intrinsic value ($13.28)
Very high PEG ratio (22.79) indicating the price has outpaced growth
Bearish technical trend (0/100) and weak insider sentiment (40/100)

Compare Another Pair

AVGO vs RDWR: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Radware Ltd. (RDWR) 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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