WallStSmart

Broadcom Inc (AVGO)vsVaronis Systems (VRNS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Broadcom Inc generates 10242% more annual revenue ($68.28B vs $660.24M). AVGO leads profitability with a 36.6% profit margin vs -19.8%. AVGO appears more attractively valued with a PEG of 1.00. AVGO earns a higher WallStSmart Score of 76/100 (B+).

AVGO

Strong Buy

76

out of 100

Grade: B+

Growth: 9.3Profit: 9.5Value: 5.0Quality: 7.0
Piotroski: 6/9Altman Z: 1.59

VRNS

Avoid

32

out of 100

Grade: F

Growth: 6.0Profit: 2.0Value: 5.7Quality: 4.0
Piotroski: 3/9Altman Z: 0.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AVGO.

VRNSUndervalued (+57.4%)

Margin of Safety

+57.4%

Fair Value

$61.77

Current Price

$32.69

$29.08 discount

UndervaluedFair: $61.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVGO6 strengths · Avg: 9.7/10
Market CapQuality
$2.28T10/10

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
44.9%10/10

Strong operational efficiency at 44.9%

Free Cash FlowQuality
$10.26B10/10

Generating 10.3B in free cash flow

PEG RatioValuation
1.008/10

Growing faster than its price suggests

VRNS1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
26.9%8/10

Revenue surging 26.9% year-over-year

Areas to Watch

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

Distress zone — elevated risk

P/E RatioValuation
93.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
22.9x2/10

Trading at 22.9x book value

VRNS4 concerns · Avg: 3.5/10
Price/BookValuation
8.3x4/10

Trading at 8.3x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Debt/EquityHealth
1.133/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 44.9%. Revenue growth of 29.5% demonstrates continued momentum.

Bull Case : VRNS

The strongest argument for VRNS centers on Revenue Growth. Revenue growth of 26.9% demonstrates continued momentum.

Bear Case : AVGO

The primary concerns for AVGO are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 93.5x leaves little room for execution misses.

Bear Case : VRNS

The primary concerns for VRNS are Price/Book, EPS Growth, Debt/Equity.

Key Dynamics to Monitor

AVGO carries more volatility with a beta of 1.44 — expect wider price swings.

AVGO is growing revenue faster at 29.5% — sustainability is the question.

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

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AVGO scores higher overall (76/100 vs 32/100), backed by strong 36.6% margins and 29.5% revenue growth. VRNS offers better value entry with a 57.4% margin of safety. 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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Varonis Systems

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Varonis Systems (VRNS) is a leading cybersecurity firm specializing in data security and analytics solutions that protect sensitive information across on-premises and cloud environments. Leveraging advanced machine learning and behavioral analytics, Varonis empowers organizations to proactively identify and mitigate data risks, while ensuring compliance with stringent regulatory standards. Serving a diverse range of industries, the company has solidified its reputation as a vital ally for enterprises addressing the challenges of data protection in an evolving threat landscape. As the need for comprehensive data security solutions escalates, Varonis is well-positioned for substantial growth in the expanding cybersecurity market.

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