WallStSmart

Broadcom Inc (AVGO)vsStoneCo Ltd (STNE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Broadcom Inc generates 458% more annual revenue ($75.46B vs $13.54B). AVGO leads profitability with a 38.9% profit margin vs 26.0%. STNE trades at a lower P/E of 4.2x. AVGO earns a higher WallStSmart Score of 80/100 (A-).

AVGO

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 6/9Altman Z: 1.59

STNE

Strong Buy

77

out of 100

Grade: B+

Growth: 7.3Profit: 9.0Value: 8.3Quality: 4.0
Piotroski: 4/9Altman Z: 0.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AVGO.

STNEUndervalued (+79.4%)

Margin of Safety

+79.4%

Fair Value

$85.94

Current Price

$10.74

$75.20 discount

UndervaluedFair: $85.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVGO6 strengths · Avg: 10.0/10
Market CapQuality
$1.87T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
38.9%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
49.0%10/10

Strong operational efficiency at 49.0%

Revenue GrowthGrowth
47.9%10/10

Revenue surging 47.9% year-over-year

EPS GrowthGrowth
85.4%10/10

Earnings expanding 85.4% YoY

STNE6 strengths · Avg: 9.7/10
P/E RatioValuation
4.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

EPS GrowthGrowth
273.8%10/10

Earnings expanding 273.8% YoY

Return on EquityProfitability
28.4%9/10

Every $100 of equity generates 28 in profit

Profit MarginProfitability
26.0%9/10

Keeps 26 of every $100 in revenue as profit

Areas to Watch

AVGO3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

P/E RatioValuation
63.7x2/10

Premium valuation, high expectations priced in

Price/BookValuation
20.9x2/10

Trading at 20.9x book value

STNE3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Debt/EquityHealth
1.293/10

Elevated debt levels

Altman Z-ScoreHealth
0.892/10

Distress zone — elevated risk

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 38.9% and operating margin at 49.0%. Revenue growth of 47.9% 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 26.0% and operating margin at 44.3%.

Bear Case : AVGO

The primary concerns for AVGO are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 63.7x leaves little room for execution misses.

Bear Case : STNE

The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.

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 1.59 — expect wider price swings.

AVGO is growing revenue faster at 47.9% — sustainability is the question.

AVGO generates stronger free cash flow (10.3B), providing more financial flexibility.

Bottom Line

AVGO scores higher overall (80/100 vs 77/100), backed by strong 38.9% margins and 47.9% revenue growth. STNE offers better value entry with a 79.4% 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.

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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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