Broadcom Inc (AVGO)vsPegasystems Inc (PEGA)
AVGO
Broadcom Inc
$417.43
+2.95%
TECHNOLOGY · Cap: $1.92T
PEGA
Pegasystems Inc
$35.67
-0.81%
TECHNOLOGY · Cap: $5.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 3916% more annual revenue ($68.28B vs $1.70B). AVGO leads profitability with a 36.6% profit margin vs 20.0%. AVGO appears more attractively valued with a PEG of 0.87. AVGO earns a higher WallStSmart Score of 78/100 (B+).
AVGO
Strong Buy78
out of 100
Grade: B+
PEGA
Hold45
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+63.9%
Fair Value
$105.15
Current Price
$35.67
$69.48 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 44.9%
Growing faster than its price suggests
Revenue surging 29.5% year-over-year
Every $100 of equity generates 52 in profit
Conservative balance sheet, low leverage
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 24.8x book value
Trading at 8.5x book value
Expensive relative to growth rate
Revenue declined 9.6%
Earnings declined 60.6%
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 44.9%. Revenue growth of 29.5% demonstrates continued momentum.
Bull Case : PEGA
The strongest argument for PEGA centers on Return on Equity, Debt/Equity, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 8.6%.
Bear Case : AVGO
The primary concerns for AVGO are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 79.2x leaves little room for execution misses.
Bear Case : PEGA
The primary concerns for PEGA are Price/Book, PEG Ratio, Revenue Growth.
Key Dynamics to Monitor
AVGO profiles as a growth stock while PEGA is a declining play — different risk/reward profiles.
AVGO carries more volatility with a beta of 1.25 — expect wider price swings.
AVGO is growing revenue faster at 29.5% — sustainability is the question.
AVGO generates stronger free cash flow (8.0B), providing more financial flexibility.
Bottom Line
AVGO scores higher overall (78/100 vs 45/100), backed by strong 36.6% margins and 29.5% revenue growth. PEGA offers better value entry with a 63.9% margin of safety. 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.
Visit Website →Pegasystems Inc
TECHNOLOGY · SOFTWARE - APPLICATION · USA
Pegasystems Inc. develops, markets, licenses, hosts and supports business software applications in the United States, the rest of the Americas, the United Kingdom, the rest of Europe, the Middle East, Africa, and Asia-Pacific. The company is headquartered in Cambridge, Massachusetts.
Visit Website →Compare with Other SEMICONDUCTORS Stocks
Want to dig deeper into these stocks?