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AVGO vs SILC

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
SILC
Silicom Ltd.
NEUTRAL
Price
$28.70
Market Cap
$163.8M
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
AVGO
68.48
SILC
--
Forward P/E
AVGO
19.65
SILC
-27.86
P/B Ratio
AVGO
20.79
SILC
1.39
P/S Ratio
AVGO
24.35
SILC
2.64
EV/EBITDA
AVGO
46.0
SILC
-11.42

Profitability

Gross Margin
AVGO
76.73%
SILC
30.56%
Operating Margin
AVGO
44.94%
SILC
-16.62%
Profit Margin
AVGO
36.57%
SILC
-18.54%
ROE
AVGO
33.37%
SILC
-9.36%
ROA
AVGO
10.66%
SILC
-5.07%

Growth

Revenue Growth
AVGO
29.5%
SILC
16.7%
Earnings Growth
AVGO
31.6%
SILC
--

Financial Health

Debt/Equity
AVGO
0.83
SILC
0.05
Current Ratio
AVGO
1.9
SILC
4.15
Quick Ratio
AVGO
1.67
SILC
2.17

Dividends

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

SILC presents a paradoxical profile with a stable Piotroski F-Score of 4/9 and an exceptionally strong balance sheet, yet deteriorating operational profitability. While the company maintains a very low Debt/Equity ratio (0.05) and high liquidity (Current Ratio 4.15), it has transitioned from a period of consistent profitability (2020-2023) to consistent quarterly losses in 2024-2026. The recent 110% one-year price surge is disconnected from fundamental earnings, as the Forward P/E remains negative (-27.86). The stock is currently a momentum play supported by a clean balance sheet rather than a value play supported by earnings.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.05
Strong liquidity position with a Current Ratio of 4.15
Positive top-line momentum with 16.70% YoY revenue growth
Risks
Persistent negative profit margins (-18.54%)
Alarming trend of negative EPS over the last 8+ quarters
Negative Forward P/E indicating lack of near-term profitability

Compare Another Pair

AVGO vs SILC: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Silicom Ltd. (SILC) 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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