WallStSmart

Broadcom Inc (AVGO)vsSemtech Corporation (SMTC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Broadcom Inc generates 6403% more annual revenue ($68.28B vs $1.05B). AVGO leads profitability with a 36.6% profit margin vs -3.9%. AVGO appears more attractively valued with a PEG of 0.68. AVGO earns a higher WallStSmart Score of 76/100 (B+).

AVGO

Strong Buy

76

out of 100

Grade: B+

Growth: 7.3Profit: 9.5Value: 4.7Quality: 7.5
Piotroski: 6/9Altman Z: 1.59

SMTC

Avoid

30

out of 100

Grade: F

Growth: 5.3Profit: 4.0Value: 4.0Quality: 5.8
Piotroski: 5/9Altman Z: 1.29
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AVGOSignificantly Overvalued (-32.6%)

Margin of Safety

-32.6%

Fair Value

$240.08

Current Price

$318.81

$78.73 premium

UndervaluedFair: $240.08Overvalued

Intrinsic value data unavailable for SMTC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVGO6 strengths · Avg: 9.3/10
Market CapQuality
$1.51T10/10

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%

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Revenue GrowthGrowth
16.4%8/10

16.4% revenue growth

SMTC0 strengths · Avg: 0/10

No standout strengths identified

Areas to Watch

AVGO3 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.9%4/10

1.9% earnings growth

Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

P/E RatioValuation
62.3x2/10

Premium valuation, high expectations priced in

SMTC4 concerns · Avg: 2.5/10
Price/BookValuation
13.5x4/10

Trading at 13.5x book value

PEG RatioValuation
3.392/10

Expensive relative to growth rate

Return on EquityProfitability
-7.4%2/10

ROE of -7.4% — below average capital efficiency

EPS GrowthGrowth
-32.7%2/10

Earnings declined 32.7%

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 : SMTC

SMTC has a balanced fundamental profile.

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 : SMTC

The primary concerns for SMTC are Price/Book, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

AVGO profiles as a growth stock while SMTC is a turnaround play — different risk/reward profiles.

SMTC carries more volatility with a beta of 2.04 — 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 30/100), backed by strong 36.6% margins and 16.4% revenue growth. Both earn "Strong Buy" and "Avoid" 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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Semtech Corporation

TECHNOLOGY · SEMICONDUCTORS · USA

Semtech Corporation designs, develops, manufactures, and markets mixed-signal and analog semiconductor products and advanced algorithms. The company is headquartered in Camarillo, California.

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