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AVGO vs RPD

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
RPD
Rapid7, Inc.
BEARISH
Price
$5.68
Market Cap
$374.3M
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
RPD
15.78
Forward P/E
AVGO
19.65
RPD
3.61
P/B Ratio
AVGO
20.79
RPD
2.42
P/S Ratio
AVGO
24.35
RPD
0.44
EV/EBITDA
AVGO
46.0
RPD
15.09

Profitability

Gross Margin
AVGO
76.73%
RPD
70.34%
Operating Margin
AVGO
44.94%
RPD
1.01%
Profit Margin
AVGO
36.57%
RPD
2.72%
ROE
AVGO
33.37%
RPD
27.12%
ROA
AVGO
10.66%
RPD
0.45%

Growth

Revenue Growth
AVGO
29.5%
RPD
0.5%
Earnings Growth
AVGO
31.6%
RPD
39.0%

Financial Health

Debt/Equity
AVGO
0.83
RPD
6.26
Current Ratio
AVGO
1.9
RPD
1.28
Quick Ratio
AVGO
1.67
RPD
1.12

Dividends

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

RPD exhibits a precarious financial profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a dangerously high Debt/Equity ratio of 6.26. While valuation metrics like the PEG ratio (0.27) and Forward P/E (3.61) suggest the stock is deeply undervalued, this is offset by stagnant revenue growth (0.50%) and a catastrophic long-term price collapse (-93.3% over 5 years). The disconnect between the Intrinsic Value ($10.62) and the current price reflects significant market skepticism regarding the company's solvency and growth trajectory.

Strengths
Strong Gross Margins (70.34%)
Very low PEG ratio (0.27) suggesting undervaluation relative to earnings growth
Consistent history of beating earnings estimates (3/4 last 4 quarters)
Risks
Extreme leverage with a Debt/Equity ratio of 6.26
Stagnant top-line growth (YoY Revenue Growth of 0.50%)
Severe negative price momentum (1Y Change: -74.8%)

Compare Another Pair

AVGO vs RPD: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Rapid7, Inc. (RPD) 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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