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AVT vs KC

AVT
Avnet, Inc.
NEUTRAL
Price
$50.83
Market Cap
$4.13B
Sector
Technology
AI Confidence
65%
KC
Kingsoft Cloud Holdings Limited
NEUTRAL
Price
$15.11
Market Cap
$4.47B
Sector
Technology
AI Confidence
80%

Valuation

P/E Ratio
AVT
18.97
KC
--
Forward P/E
AVT
8.19
KC
-117.05
P/B Ratio
AVT
0.85
KC
3.39
P/S Ratio
AVT
0.18
KC
0.47
EV/EBITDA
AVT
10.47
KC
43.74

Profitability

Gross Margin
AVT
10.63%
KC
15.73%
Operating Margin
AVT
2.58%
KC
-2.41%
Profit Margin
AVT
1.04%
KC
-9.79%
ROE
AVT
4.71%
KC
-12.74%
ROA
AVT
3.07%
KC
-2.18%

Growth

Revenue Growth
AVT
5.3%
KC
23.7%
Earnings Growth
AVT
-7.6%
KC
--

Financial Health

Debt/Equity
AVT
0.66
KC
1.29
Current Ratio
AVT
2.36
KC
1.17
Quick Ratio
AVT
1.07
KC
0.88

Dividends

Dividend Yield
AVT
2.73%
KC
--
Payout Ratio
AVT
49.63%
KC
0.0%

AI Verdict

AVT NEUTRAL

AVT's deterministic health score is concerning with a Piotroski F-Score of 4/9, indicating marginal financial health. The Graham Number suggests a defensive fair value of $59.95, implying the current price of $50.83 is slightly undervalued, though growth-based intrinsic value is much lower at $18.76. Profitability metrics are weak, with low margins and declining earnings, but the balance sheet shows strength via a solid current ratio and moderate leverage. Despite mixed signals, the stock appears fairly valued with moderate risks and limited near-term catalysts.

Strengths
Current price ($50.83) is below Graham Number ($59.95), suggesting potential defensive undervaluation
Strong liquidity position with a current ratio of 2.36 and quick ratio of 1.07
Moderate debt/equity of 0.66, below sector average of 0.61, indicating conservative capital structure
Risks
Low Piotroski F-Score of 4/9 signals weak financial health, particularly in profitability and leverage trends
Earnings under pressure with YoY EPS growth at -8.7% and operating margin just 2.58%
Profit margin of only 1.04% is extremely thin, leaving little room for margin of safety
KC NEUTRAL

KC exhibits a stark divergence between fundamental health and growth potential. The Piotroski F-Score of 3/9 indicates weak financial health, compounded by consistent net losses and a high Debt/Equity ratio of 1.29. However, the company shows strong top-line momentum with 23.7% YoY revenue growth and a very attractive Price/Sales ratio of 0.47. While analysts maintain a 'strong_buy' rating with a target of $20.09, the lack of profitability and poor deterministic health scores suggest a high-risk speculative profile.

Strengths
Strong YoY revenue growth of 23.70%
Accelerating Q/Q revenue growth at 31.42%
Very low Price/Sales ratio (0.47) suggesting undervaluation relative to sales
Risks
Weak financial health as evidenced by a Piotroski F-Score of 3/9
Persistent lack of profitability with a negative profit margin of -9.80%
High leverage with a Debt/Equity ratio of 1.29, exceeding sector averages

Compare Another Pair

AVT vs KC: Head-to-Head Comparison

This page compares Avnet, Inc. (AVT) and Kingsoft Cloud Holdings Limited (KC) 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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