Allegro Microsystems Inc (ALGM)vsBroadcom Inc (AVGO)
ALGM
Allegro Microsystems Inc
$42.85
-2.45%
TECHNOLOGY · Cap: $7.73B
AVGO
Broadcom Inc
$418.16
+0.03%
TECHNOLOGY · Cap: $1.99T
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 7878% more annual revenue ($75.46B vs $945.93M). AVGO leads profitability with a 38.9% profit margin vs 1.5%. AVGO trades at a lower P/E of 69.5x. AVGO earns a higher WallStSmart Score of 80/100 (A-).
ALGM
Avoid31
out of 100
Grade: F
AVGO
Exceptional Buy80
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.3%
Fair Value
$26.22
Current Price
$42.85
$16.63 premium
Intrinsic value data unavailable for AVGO.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Revenue surging 27.5% year-over-year
Mega-cap, among the largest globally
Growing faster than its price suggests
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
Areas to Watch
Trading at 8.3x book value
1.5% margin — thin
Premium valuation, high expectations priced in
ROE of -1.6% — below average capital efficiency
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 22.7x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : ALGM
The strongest argument for ALGM centers on Revenue Growth. Revenue growth of 27.5% demonstrates continued momentum.
Bull Case : AVGO
The strongest argument for AVGO centers on Market Cap, PEG Ratio, Return on Equity. Profitability is solid with margins at 38.9% and operating margin at 49.0%. Revenue growth of 47.9% demonstrates continued momentum.
Bear Case : ALGM
The primary concerns for ALGM are Price/Book, Profit Margin, P/E Ratio. A P/E of 592.9x leaves little room for execution misses. Thin 1.5% margins leave little buffer for downturns.
Bear Case : AVGO
The primary concerns for AVGO are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 69.5x leaves little room for execution misses.
Key Dynamics to Monitor
ALGM carries more volatility with a beta of 1.90 — 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 31/100), backed by strong 38.9% margins and 47.9% revenue growth. Both earn "Exceptional 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.
Allegro Microsystems Inc
TECHNOLOGY · SEMICONDUCTORS · USA
Allegro MicroSystems, Inc. designs, develops, manufactures and markets sensor integrated circuits (ICs) and analog power ICs for specific applications for motion control and energy efficient systems. The company is headquartered in Manchester, New Hampshire.
Visit Website →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 →Compare with Other SEMICONDUCTORS Stocks
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