Broadcom Inc (AVGO)vsWestern Digital Corporation (WDC)
AVGO
Broadcom Inc
$310.51
-2.92%
TECHNOLOGY · Cap: $1.47T
WDC
Western Digital Corporation
$293.10
-7.52%
TECHNOLOGY · Cap: $100.21B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 536% more annual revenue ($68.28B vs $10.73B). AVGO leads profitability with a 36.6% profit margin vs 35.6%. WDC appears more attractively valued with a PEG of 0.69. AVGO earns a higher WallStSmart Score of 76/100 (B+).
AVGO
Strong Buy76
out of 100
Grade: B+
WDC
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-33.5%
Fair Value
$232.60
Current Price
$310.51
$77.91 premium
Margin of Safety
-311.2%
Fair Value
$66.57
Current Price
$293.10
$226.53 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%
Earnings expanding 188.1% YoY
Growing faster than its price suggests
Every $100 of equity generates 41 in profit
Keeps 36 of every $100 in revenue as profit
Large-cap with strong market position
Growing faster than its price suggests
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Moderate valuation
Trading at 14.0x book value
Revenue declined 41.0%
Earnings declined 95.9%
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 : WDC
The strongest argument for WDC centers on Return on Equity, Profit Margin, Market Cap. Profitability is solid with margins at 35.6% and operating margin at 15.4%. PEG of 0.69 suggests the stock is reasonably priced for its growth.
Bear Case : AVGO
The primary concerns for AVGO are Altman Z-Score, P/E Ratio. A P/E of 62.5x leaves little room for execution misses.
Bear Case : WDC
The primary concerns for WDC are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
AVGO profiles as a growth stock while WDC is a declining play — different risk/reward profiles.
WDC carries more volatility with a beta of 1.85 — 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 55/100), 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 →Western Digital Corporation
TECHNOLOGY · COMPUTER HARDWARE · USA
Western Digital Corporation (WDC, commonly known as Western Digital or WD) is an American computer hard disk drive manufacturer and data storage company, headquartered in San Jose, California. It designs, manufactures and sells data technology products, including storage devices, data center systems and cloud storage services.
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