WallStSmart

Broadcom Inc (AVGO)vsON Semiconductor Corporation (ON)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Broadcom Inc generates 1039% more annual revenue ($68.28B vs $6.00B). AVGO leads profitability with a 36.6% profit margin vs 2.0%. ON appears more attractively valued with a PEG of 0.23. AVGO earns a higher WallStSmart Score of 76/100 (B+).

AVGO

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 9.5Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: 1.59

ON

Hold

43

out of 100

Grade: D

Growth: 2.0Profit: 7.0Value: 4.7Quality: 6.8
Piotroski: 3/9Altman Z: 2.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVGOSignificantly Overvalued (-33.5%)

Margin of Safety

-33.5%

Fair Value

$232.60

Current Price

$310.51

$77.91 premium

UndervaluedFair: $232.60Overvalued
ONSignificantly Overvalued (-3513.2%)

Margin of Safety

-3513.2%

Fair Value

$1.97

Current Price

$59.26

$57.29 premium

UndervaluedFair: $1.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVGO6 strengths · Avg: 9.7/10
Market CapQuality
$1.47T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
36.6%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
31.8%10/10

Strong operational efficiency at 31.8%

EPS GrowthGrowth
188.1%10/10

Earnings expanding 188.1% YoY

PEG RatioValuation
0.708/10

Growing faster than its price suggests

ON2 strengths · Avg: 10.0/10
PEG RatioValuation
0.2310/10

Growing faster than its price suggests

Return on EquityProfitability
150.0%10/10

Every $100 of equity generates 150 in profit

Areas to Watch

AVGO2 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

P/E RatioValuation
62.5x2/10

Premium valuation, high expectations priced in

ON4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.0%3/10

2.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
206.5x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-11.2%2/10

Revenue declined 11.2%

Comparative Analysis Report

WallStSmart Research

Bull 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 : ON

The strongest argument for ON centers on PEG Ratio, Return on Equity. PEG of 0.23 suggests the stock is reasonably priced for its growth.

Bear Case : AVGO

The primary concerns for AVGO are Altman Z-Score, P/E Ratio. A P/E of 62.5x leaves little room for execution misses.

Bear Case : ON

The primary concerns for ON are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 206.5x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

AVGO profiles as a growth stock while ON is a value play — different risk/reward profiles.

ON carries more volatility with a beta of 1.53 — expect wider price swings.

AVGO is growing revenue faster at 16.4% — sustainability is the question.

AVGO generates stronger free cash flow (8.0B), providing more financial flexibility.

Bottom Line

AVGO scores higher overall (76/100 vs 43/100), backed by strong 36.6% margins and 16.4% revenue growth. Both earn "Strong Buy" and "Hold" 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.

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ON Semiconductor Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company is headquartered in Phoenix, Arizona.

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