Broadcom Inc (AVGO)vsZscaler Inc (ZS)
AVGO
Broadcom Inc
$385.73
+0.51%
TECHNOLOGY · Cap: $1.87T
ZS
Zscaler Inc
$124.06
-3.31%
TECHNOLOGY · Cap: $20.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 2278% more annual revenue ($75.46B vs $3.17B). AVGO leads profitability with a 38.9% profit margin vs -2.4%. AVGO appears more attractively valued with a PEG of 0.69. AVGO earns a higher WallStSmart Score of 80/100 (A-).
AVGO
Exceptional Buy80
out of 100
Grade: A-
ZS
Hold38
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+44.6%
Fair Value
$308.92
Current Price
$124.06
$184.86 discount
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 39 of every $100 in revenue as profit
Strong operational efficiency at 49.0%
Revenue surging 47.9% year-over-year
Earnings expanding 85.4% YoY
Revenue surging 25.4% year-over-year
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 20.9x book value
Trading at 8.5x book value
0.0% earnings growth
Weak financial health signals
ROE of -3.3% — below average capital efficiency
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 38.9% and operating margin at 49.0%. Revenue growth of 47.9% demonstrates continued momentum.
Bull Case : ZS
The strongest argument for ZS centers on Revenue Growth. Revenue growth of 25.4% demonstrates continued momentum. PEG of 1.41 suggests the stock is reasonably priced for its growth.
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 : ZS
The primary concerns for ZS are Price/Book, EPS Growth, Piotroski F-Score.
Key Dynamics to Monitor
AVGO carries more volatility with a beta of 1.43 — 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.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AVGO scores higher overall (80/100 vs 38/100), backed by strong 38.9% margins and 47.9% revenue growth. ZS offers better value entry with a 44.6% margin of safety. Both earn "Exceptional Buy" and "Hold" 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 →Zscaler Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Zscaler, Inc. is a global cloud security company. The company is headquartered in San Jose, California.
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