Broadcom Inc (AVGO)vsStoneCo Ltd (STNE)
AVGO
Broadcom Inc
$291.53
+0.74%
TECHNOLOGY · Cap: $1.56T
STNE
StoneCo Ltd
$7.49
-2.60%
TECHNOLOGY · Cap: $1.79B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 556% more annual revenue ($89.10B vs $13.59B). AVGO leads profitability with a 42.9% profit margin vs 24.7%. STNE trades at a lower P/E of 3.0x. AVGO earns a higher WallStSmart Score of 80/100 (A-).
AVGO
Exceptional Buy80
out of 100
Grade: A-
STNE
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+79.2%
Fair Value
$85.05
Current Price
$7.49
$77.56 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Every $100 of equity generates 38 in profit
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 54.3%
Revenue surging 85.5% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 39.6%
Every $100 of equity generates 28 in profit
Keeps 25 of every $100 in revenue as profit
Generating 1.7B in free cash flow
Areas to Watch
Trading at 14.0x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
1.6% revenue growth
Smaller company, higher risk/reward
Elevated debt levels
Earnings declined 16.6%
Comparative Analysis Report
WallStSmart ResearchBull Case : AVGO
The strongest argument for AVGO centers on Market Cap, PEG Ratio, Return on Equity. Profitability is solid with margins at 42.9% and operating margin at 54.3%. Revenue growth of 85.5% demonstrates continued momentum.
Bull Case : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 24.7% and operating margin at 39.6%.
Bear Case : AVGO
The primary concerns for AVGO are Price/Book, Altman Z-Score, P/E Ratio. A P/E of 41.6x leaves little room for execution misses.
Bear Case : STNE
The primary concerns for STNE are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.81 is elevated, increasing financial risk.
Key Dynamics to Monitor
AVGO profiles as a growth stock while STNE is a value play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.54 — expect wider price swings.
AVGO is growing revenue faster at 85.5% — sustainability is the question.
AVGO generates stronger free cash flow (13.7B), providing more financial flexibility.
Bottom Line
AVGO scores higher overall (80/100 vs 66/100), backed by strong 42.9% margins and 85.5% revenue growth. STNE offers better value entry with a 79.2% margin of safety. Both earn "Exceptional 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 →StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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