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AVGO vs SEDG

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
SEDG
SolarEdge Technologies, Inc.
BEARISH
Price
$38.30
Market Cap
$2.31B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
SEDG
--
Forward P/E
AVGO
19.65
SEDG
21.53
P/B Ratio
AVGO
20.79
SEDG
5.41
P/S Ratio
AVGO
24.35
SEDG
1.95
EV/EBITDA
AVGO
46.0
SEDG
-10.13

Profitability

Gross Margin
AVGO
76.73%
SEDG
15.42%
Operating Margin
AVGO
44.94%
SEDG
-9.28%
Profit Margin
AVGO
36.57%
SEDG
-34.23%
ROE
AVGO
33.37%
SEDG
-74.68%
ROA
AVGO
10.66%
SEDG
-6.47%

Growth

Revenue Growth
AVGO
29.5%
SEDG
70.9%
Earnings Growth
AVGO
31.6%
SEDG
--

Financial Health

Debt/Equity
AVGO
0.83
SEDG
0.95
Current Ratio
AVGO
1.9
SEDG
2.17
Quick Ratio
AVGO
1.67
SEDG
1.31

Dividends

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

SEDG exhibits severe fundamental weakness, highlighted by a Piotroski F-Score of 2/9, indicating poor financial health. While the company shows impressive YoY revenue growth of 70.90%, this is offset by a deeply negative profit margin of -34.23% and a disastrous ROE of -74.68%. The valuation is stretched with a PEG ratio of 4.61, and the technical trend is completely bearish (0/100). Despite recent positive EPS surprises, the company's historical earnings volatility and lack of profitability make it a high-risk speculative play.

Strengths
Strong YoY revenue growth of 70.90%
Robust Q/Q revenue growth of 96.40%
Healthy liquidity with a Current Ratio of 2.17
Risks
Critically low Piotroski F-Score (2/9) signaling financial instability
Severe negative profitability (Profit Margin: -34.23%)
Extreme valuation premium relative to growth (PEG Ratio: 4.61)

Compare Another Pair

AVGO vs SEDG: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and SolarEdge Technologies, Inc. (SEDG) 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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