Broadcom Inc (AVGO)vsIllinois Tool Works Inc (ITW)
AVGO
Broadcom Inc
$318.81
+0.16%
TECHNOLOGY · Cap: $1.51T
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 326% more annual revenue ($68.28B vs $16.04B). AVGO leads profitability with a 36.6% profit margin vs 19.1%. AVGO appears more attractively valued with a PEG of 0.68. AVGO earns a higher WallStSmart Score of 76/100 (B+).
AVGO
Strong Buy76
out of 100
Grade: B+
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.6%
Fair Value
$240.08
Current Price
$318.81
$78.73 premium
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 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 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
Areas to Watch
1.9% earnings growth
Distress zone — elevated risk
Premium valuation, high expectations priced in
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
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 : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.1% and operating margin at 26.8%.
Bear Case : AVGO
The primary concerns for AVGO are EPS Growth, Altman Z-Score, P/E Ratio. A P/E of 62.3x leaves little room for execution misses.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
AVGO profiles as a growth stock while ITW is a value 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 58/100), 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 →Illinois Tool Works Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.
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