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AVGO vs RMBS

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
RMBS
Rambus Inc.
BEARISH
Price
$126.93
Market Cap
$13.73B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
RMBS
60.16
Forward P/E
AVGO
19.65
RMBS
36.13
P/B Ratio
AVGO
20.79
RMBS
10.03
P/S Ratio
AVGO
24.35
RMBS
19.4
EV/EBITDA
AVGO
46.0
RMBS
42.84

Profitability

Gross Margin
AVGO
76.73%
RMBS
80.56%
Operating Margin
AVGO
44.94%
RMBS
37.23%
Profit Margin
AVGO
36.57%
RMBS
32.57%
ROE
AVGO
33.37%
RMBS
18.55%
ROA
AVGO
10.66%
RMBS
11.32%

Growth

Revenue Growth
AVGO
29.5%
RMBS
18.1%
Earnings Growth
AVGO
31.6%
RMBS
1.6%

Financial Health

Debt/Equity
AVGO
0.83
RMBS
0.02
Current Ratio
AVGO
1.9
RMBS
8.2
Quick Ratio
AVGO
1.67
RMBS
7.67

Dividends

Dividend Yield
AVGO
0.74%
RMBS
--
Payout Ratio
AVGO
47.17%
RMBS
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)
RMBS BEARISH

RMBS exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally strong balance sheet (Debt/Equity 0.02). However, the stock is severely overvalued, trading at $126.93—over 5x its Graham Number of $24.52 and 6x its growth-based intrinsic value of $19.83. While profitability margins are elite (80.56% gross margin), the divergence between strong revenue growth (18.1%) and stagnant earnings growth (1.6%) suggests diminishing returns. Combined with bearish insider selling and a weak technical trend, the current price appears unsustainable.

Strengths
Exceptional gross margins (80.56%) and operating margins (37.23%)
Near-zero leverage with a Debt/Equity ratio of 0.02
High liquidity with a Current Ratio of 8.20
Risks
Extreme valuation premium (P/E 60.16, P/S 19.40)
Significant disconnect between current price and deterministic fair value ($24.52)
Earnings growth (1.6%) is failing to keep pace with revenue growth (18.1%)

Compare Another Pair

AVGO vs RMBS: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Rambus Inc. (RMBS) 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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