Broadcom Inc (AVGO)vsTexas Instruments Incorporated (TXN)
AVGO
Broadcom Inc
$315.93
+1.24%
TECHNOLOGY · Cap: $1.50T
TXN
Texas Instruments Incorporated
$190.78
-1.31%
TECHNOLOGY · Cap: $177.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 286% more annual revenue ($68.28B vs $17.68B). AVGO leads profitability with a 36.6% profit margin vs 28.3%. AVGO appears more attractively valued with a PEG of 0.74. AVGO earns a higher WallStSmart Score of 76/100 (B+).
AVGO
Strong Buy76
out of 100
Grade: B+
TXN
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-33.8%
Fair Value
$240.08
Current Price
$315.93
$75.85 premium
Margin of Safety
-407.1%
Fair Value
$37.13
Current Price
$190.78
$153.65 premium
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 31.8%
Growing faster than its price suggests
16.4% revenue growth
Every $100 of equity generates 30 in profit
Strong operational efficiency at 34.0%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Keeps 28 of every $100 in revenue as profit
Generating 1.3B in free cash flow
Areas to Watch
1.9% earnings growth
Distress zone — elevated risk
Premium valuation, high expectations priced in
Premium valuation, high expectations priced in
Trading at 10.6x book value
Earnings declined 3.2%
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 31.8%. Revenue growth of 16.4% demonstrates continued momentum.
Bull Case : TXN
The strongest argument for TXN centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.3% and operating margin at 34.0%. Revenue growth of 10.4% demonstrates continued momentum.
Bear Case : AVGO
The primary concerns for AVGO are EPS Growth, Altman Z-Score, P/E Ratio. A P/E of 61.5x leaves little room for execution misses.
Bear Case : TXN
The primary concerns for TXN are P/E Ratio, Price/Book, EPS Growth.
Key Dynamics to Monitor
AVGO profiles as a growth stock while TXN is a mature play — different risk/reward profiles.
AVGO carries more volatility with a beta of 1.26 — 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 63/100), backed by strong 36.6% margins and 16.4% revenue growth. Both earn "Strong Buy" and "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 →Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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