Broadcom Inc (AVGO)vsStoneCo Ltd (STNE)
AVGO
Broadcom Inc
$385.73
+0.51%
TECHNOLOGY · Cap: $1.87T
STNE
StoneCo Ltd
$10.74
-3.35%
TECHNOLOGY · Cap: $2.74B
Smart Verdict
WallStSmart Research — data-driven comparison
Broadcom Inc generates 458% more annual revenue ($75.46B vs $13.54B). AVGO leads profitability with a 38.9% profit margin vs 26.0%. STNE trades at a lower P/E of 4.2x. AVGO earns a higher WallStSmart Score of 80/100 (A-).
AVGO
Exceptional Buy80
out of 100
Grade: A-
STNE
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+79.4%
Fair Value
$85.94
Current Price
$10.74
$75.20 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
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 44.3%
Earnings expanding 273.8% YoY
Every $100 of equity generates 28 in profit
Keeps 26 of every $100 in revenue as profit
Areas to Watch
Distress zone — elevated risk
Premium valuation, high expectations priced in
Trading at 20.9x book value
4.3% revenue growth
Elevated debt levels
Distress zone — elevated risk
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 : STNE
The strongest argument for STNE centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.0% and operating margin at 44.3%.
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 : STNE
The primary concerns for STNE are Revenue Growth, Debt/Equity, Altman Z-Score.
Key Dynamics to Monitor
AVGO profiles as a growth stock while STNE is a value play — different risk/reward profiles.
STNE carries more volatility with a beta of 1.59 — 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.
Bottom Line
AVGO scores higher overall (80/100 vs 77/100), backed by strong 38.9% margins and 47.9% revenue growth. STNE offers better value entry with a 79.4% 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.
Visit Website →StoneCo Ltd
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
StoneCo Ltd. provides fintech solutions to merchants and integrated partners to conduct e-commerce through store, online and mobile channels in Brazil.
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