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AVGO vs RELL

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
RELL
Richardson Electronics, Ltd.
BEARISH
Price
$13.65
Market Cap
$198.7M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
RELL
50.56
Forward P/E
AVGO
19.65
RELL
35.0
P/B Ratio
AVGO
20.79
RELL
1.24
P/S Ratio
AVGO
24.35
RELL
0.93
EV/EBITDA
AVGO
46.0
RELL
29.15

Profitability

Gross Margin
AVGO
76.73%
RELL
30.64%
Operating Margin
AVGO
44.94%
RELL
2.71%
Profit Margin
AVGO
36.57%
RELL
1.75%
ROE
AVGO
33.37%
RELL
2.4%
ROA
AVGO
10.66%
RELL
0.64%

Growth

Revenue Growth
AVGO
29.5%
RELL
3.1%
Earnings Growth
AVGO
31.6%
RELL
--

Financial Health

Debt/Equity
AVGO
0.83
RELL
0.01
Current Ratio
AVGO
1.9
RELL
4.49
Quick Ratio
AVGO
1.67
RELL
1.5

Dividends

Dividend Yield
AVGO
0.74%
RELL
1.76%
Payout Ratio
AVGO
47.17%
RELL
88.89%

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)
RELL BEARISH

RELL presents a dichotomy of a pristine balance sheet and severe valuation misalignment. While the Piotroski F-Score of 6/9 indicates stable financial health and the Debt/Equity ratio of 0.01 is exceptional, the stock is trading at a massive premium to its Graham Number ($8.18) and Intrinsic Value ($1.89). Profitability is dangerously thin with a profit margin of only 1.75%, and the dividend payout ratio of 88.89% is unsustainable. Combined with bearish insider selling from the CFO and Directors, the recent price surge appears fundamentally unsupported.

Strengths
Near-zero leverage with a Debt/Equity ratio of 0.01
Excellent short-term liquidity (Current Ratio 4.49)
Stable financial health as indicated by a Piotroski F-Score of 6/9
Risks
Extreme overvaluation relative to Graham Number and Intrinsic Value
Razor-thin net profit margins (1.75%) leaving no room for error
Unsustainable dividend payout ratio (88.89%)

Compare Another Pair

AVGO vs RELL: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Richardson Electronics, Ltd. (RELL) 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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