WallStSmart

Broadcom Inc (AVGO)vsOpen Text Corp (OTEX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Broadcom Inc generates 1598% more annual revenue ($89.10B vs $5.25B). AVGO leads profitability with a 42.9% profit margin vs 12.3%. AVGO appears more attractively valued with a PEG of 0.36. AVGO earns a higher WallStSmart Score of 80/100 (A-).

AVGO

Exceptional Buy

80

out of 100

Grade: A-

Growth: 10.0Profit: 10.0Value: 6.3Quality: 7.0
Piotroski: 6/9Altman Z: 1.59

OTEX

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 6.5Value: 8.7Quality: 4.5
Piotroski: 7/9Altman Z: 1.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AVGO.

OTEXUndervalued (+81.4%)

Margin of Safety

+81.4%

Fair Value

$130.17

Current Price

$23.06

$107.11 discount

UndervaluedFair: $130.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVGO6 strengths · Avg: 10.0/10
Market CapQuality
$1.73T10/10

Mega-cap, among the largest globally

PEG RatioValuation
0.3610/10

Growing faster than its price suggests

Return on EquityProfitability
38.4%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
42.9%10/10

Keeps 43 of every $100 in revenue as profit

Operating MarginProfitability
54.3%10/10

Strong operational efficiency at 54.3%

Revenue GrowthGrowth
85.5%10/10

Revenue surging 85.5% year-over-year

OTEX4 strengths · Avg: 9.5/10
P/E RatioValuation
8.8x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
476.1%10/10

Earnings expanding 476.1% YoY

Operating MarginProfitability
24.1%8/10

Strong operational efficiency at 24.1%

Areas to Watch

AVGO3 concerns · Avg: 3.3/10
Price/BookValuation
17.3x4/10

Trading at 17.3x book value

Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

P/E RatioValuation
46.2x2/10

Premium valuation, high expectations priced in

OTEX3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Debt/EquityHealth
1.493/10

Elevated debt levels

Altman Z-ScoreHealth
1.052/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AVGO

The strongest argument for AVGO centers on Market Cap, PEG Ratio, Return on Equity. Profitability is solid with margins at 42.9% and operating margin at 54.3%. Revenue growth of 85.5% demonstrates continued momentum.

Bull Case : OTEX

The strongest argument for OTEX centers on P/E Ratio, Price/Book, EPS Growth. PEG of 1.02 suggests the stock is reasonably priced for its growth.

Bear Case : AVGO

The primary concerns for AVGO are Price/Book, Altman Z-Score, P/E Ratio. A P/E of 46.2x leaves little room for execution misses.

Bear Case : OTEX

The primary concerns for OTEX are Revenue Growth, Debt/Equity, Altman Z-Score.

Key Dynamics to Monitor

AVGO profiles as a growth stock while OTEX is a value play — different risk/reward profiles.

AVGO carries more volatility with a beta of 1.46 — expect wider price swings.

AVGO is growing revenue faster at 85.5% — sustainability is the question.

AVGO generates stronger free cash flow (13.7B), providing more financial flexibility.

Bottom Line

AVGO scores higher overall (80/100 vs 74/100), backed by strong 42.9% margins and 85.5% revenue growth. OTEX offers better value entry with a 81.4% margin of safety. Both earn "Exceptional Buy" and "Strong 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.

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Open Text Corp

TECHNOLOGY · SOFTWARE - APPLICATION · USA

Open Text Corporation offers a suite of software products and services. The company is headquartered in Waterloo, Canada.

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