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AVGO vs SMCI

AVGO
Broadcom Inc.
NEUTRAL
Price
$350.63
Market Cap
$1.66T
Sector
Technology
AI Confidence
85%
SMCI
Super Micro Computer, Inc.
BEARISH
Price
$28.56
Market Cap
$17.15B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
AVGO
68.48
SMCI
20.85
Forward P/E
AVGO
19.65
SMCI
9.56
P/B Ratio
AVGO
20.79
SMCI
2.45
P/S Ratio
AVGO
24.35
SMCI
0.61
EV/EBITDA
AVGO
46.0
SMCI
16.65

Profitability

Gross Margin
AVGO
76.73%
SMCI
8.02%
Operating Margin
AVGO
44.94%
SMCI
3.74%
Profit Margin
AVGO
36.57%
SMCI
3.11%
ROE
AVGO
33.37%
SMCI
13.19%
ROA
AVGO
10.66%
SMCI
3.42%

Growth

Revenue Growth
AVGO
29.5%
SMCI
123.4%
Earnings Growth
AVGO
31.6%
SMCI
19.2%

Financial Health

Debt/Equity
AVGO
0.83
SMCI
0.75
Current Ratio
AVGO
1.9
SMCI
1.7
Quick Ratio
AVGO
1.67
SMCI
0.98

Dividends

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

SMCI exhibits a critical divergence between explosive top-line growth and deteriorating fundamental health, highlighted by a weak Piotroski F-Score of 3/9. While the stock appears undervalued on a PEG (0.91) and Price/Sales (0.61) basis, the defensive Graham Number of $18.97 suggests the current price of $28.56 is unsupported by tangible assets and earnings stability. Severe margin compression is evident as revenue growth (123.4%) vastly outpaces earnings growth (19.2%), and a 0/100 technical trend combined with bearish insider activity signals a lack of confidence in the short-term recovery.

Strengths
Exceptional YoY revenue growth of 123.40%
Attractive Forward P/E of 9.56
Low Price-to-Sales ratio (0.61) relative to sector
Risks
Weak financial health indicated by Piotroski F-Score of 3/9
Severe margin compression (Gross Margin only 8.02%)
Bearish technical trend (0/100) and significant 6-month price decline (-45.3%)

Compare Another Pair

AVGO vs SMCI: Head-to-Head Comparison

This page compares Broadcom Inc. (AVGO) and Super Micro Computer, Inc. (SMCI) 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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