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AVGO vs SANM

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
SANM
Sanmina Corporation
NEUTRAL
Price
$174.09
Market Cap
$9.51B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
SANM
41.65
Forward P/E
AVGO
19.65
SANM
14.32
P/B Ratio
AVGO
20.79
SANM
3.82
P/S Ratio
AVGO
24.35
SANM
1.02
EV/EBITDA
AVGO
46.0
SANM
17.76

Profitability

Gross Margin
AVGO
76.73%
SANM
8.49%
Operating Margin
AVGO
44.94%
SANM
3.69%
Profit Margin
AVGO
36.57%
SANM
2.47%
ROE
AVGO
33.37%
SANM
9.72%
ROA
AVGO
10.66%
SANM
3.62%

Growth

Revenue Growth
AVGO
29.5%
SANM
59.0%
Earnings Growth
AVGO
31.6%
SANM
-23.3%

Financial Health

Debt/Equity
AVGO
0.83
SANM
0.89
Current Ratio
AVGO
1.9
SANM
1.7
Quick Ratio
AVGO
1.67
SANM
0.97

Dividends

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

Sanmina Corporation exhibits strong operational health with a Piotroski F-Score of 7/9, indicating robust financial stability. However, there is a severe disconnect between the current market price ($174.09) and deterministic value metrics, with the Graham Number at $65.45 and Intrinsic Value at $29.26. While explosive revenue growth (59%) and a low PEG ratio (0.87) suggest high future potential, the negative earnings growth and bearish insider activity create significant headwinds. The stock is currently trading at a massive premium, likely pricing in aggressive future expansion that is not yet reflected in the bottom line.

Strengths
Strong financial health indicated by a Piotroski F-Score of 7/9
Explosive YoY revenue growth of 59.00%
Attractive PEG ratio of 0.87, suggesting undervaluation relative to growth
Risks
Extreme valuation gap compared to Graham Number and Intrinsic Value
Negative earnings growth (-23.30% YoY) despite surging revenues
Very thin profit margins (Profit Margin: 2.47%, Gross Margin: 8.49%)

Compare Another Pair

AVGO vs SANM: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Sanmina Corporation (SANM) 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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