Broadcom Inc (AVGO)vsMicrosoft Corporation (MSFT)
AVGO
Broadcom Inc
$318.81
+0.16%
TECHNOLOGY · Cap: $1.51T
MSFT
Microsoft Corporation
$371.04
-0.46%
TECHNOLOGY · Cap: $2.85T
Smart Verdict
WallStSmart Research — data-driven comparison
Microsoft Corporation generates 347% more annual revenue ($305.45B vs $68.28B). MSFT leads profitability with a 39.0% profit margin vs 36.6%. AVGO appears more attractively valued with a PEG of 0.68. AVGO earns a higher WallStSmart Score of 76/100 (B+).
AVGO
Strong Buy76
out of 100
Grade: B+
MSFT
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.6%
Fair Value
$240.08
Current Price
$318.81
$78.73 premium
Margin of Safety
+50.1%
Fair Value
$747.40
Current Price
$371.04
$376.36 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 33 in profit
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 31.8%
Growing faster than its price suggests
16.4% revenue growth
Mega-cap, among the largest globally
Every $100 of equity generates 34 in profit
Keeps 39 of every $100 in revenue as profit
Strong operational efficiency at 47.1%
Earnings expanding 59.8% YoY
16.7% revenue growth
Areas to Watch
1.9% earnings growth
Distress zone — elevated risk
Premium valuation, high expectations priced in
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : AVGO
The strongest argument for AVGO centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 36.6% and operating margin at 31.8%. Revenue growth of 16.4% demonstrates continued momentum.
Bull Case : MSFT
The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.0% and operating margin at 47.1%. Revenue growth of 16.7% demonstrates continued momentum.
Bear Case : AVGO
The primary concerns for AVGO are EPS Growth, Altman Z-Score, P/E Ratio. A P/E of 62.3x leaves little room for execution misses.
Bear Case : MSFT
No major red flags identified for MSFT, but monitor valuation.
Key Dynamics to Monitor
AVGO carries more volatility with a beta of 1.26 — expect wider price swings.
MSFT is growing revenue faster at 16.7% — sustainability is the question.
AVGO generates stronger free cash flow (8.0B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AVGO scores higher overall (76/100 vs 74/100), backed by strong 36.6% margins and 16.4% revenue growth. MSFT offers better value entry with a 50.1% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Broadcom Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.
Visit Website →Microsoft Corporation
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
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