WallStSmart

Broadcom Inc (AVGO)vsStoneCo Ltd (STNE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Broadcom Inc generates 410% more annual revenue ($68.28B vs $13.40B). AVGO leads profitability with a 36.6% profit margin vs 17.3%. STNE trades at a lower P/E of 6.3x. STNE earns a higher WallStSmart Score of 78/100 (B+).

AVGO

Strong Buy

78

out of 100

Grade: B+

Growth: 9.3Profit: 9.5Value: 5.0Quality: 6.5
Piotroski: 6/9Altman Z: 1.59

STNE

Strong Buy

78

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AVGO.

STNEUndervalued (+89.5%)

Margin of Safety

+89.5%

Fair Value

$168.87

Current Price

$10.77

$158.10 discount

UndervaluedFair: $168.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AVGO6 strengths · Avg: 9.3/10
Market CapQuality
$2.04T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
33.4%10/10

Every $100 of equity generates 33 in profit

Profit MarginProfitability
36.6%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
44.9%10/10

Strong operational efficiency at 44.9%

PEG RatioValuation
0.938/10

Growing faster than its price suggests

Revenue GrowthGrowth
29.5%8/10

Revenue surging 29.5% year-over-year

STNE5 strengths · Avg: 9.4/10
P/E RatioValuation
6.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Return on EquityProfitability
20.8%9/10

Every $100 of equity generates 21 in profit

EPS GrowthGrowth
46.1%8/10

Earnings expanding 46.1% YoY

Areas to Watch

AVGO3 concerns · Avg: 2.7/10
Altman Z-ScoreHealth
1.594/10

Distress zone — elevated risk

P/E RatioValuation
84.0x2/10

Premium valuation, high expectations priced in

Price/BookValuation
25.5x2/10

Trading at 25.5x book value

STNE0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull 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 44.9%. Revenue growth of 29.5% 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 17.3% and operating margin at 46.3%. Revenue growth of 11.2% demonstrates continued momentum.

Bear Case : AVGO

The primary concerns for AVGO are Altman Z-Score, P/E Ratio, Price/Book. A P/E of 84.0x leaves little room for execution misses.

Bear Case : STNE

No major red flags identified for STNE, but monitor valuation.

Key Dynamics to Monitor

AVGO profiles as a growth stock while STNE is a mature play — different risk/reward profiles.

STNE carries more volatility with a beta of 1.60 — expect wider price swings.

AVGO is growing revenue faster at 29.5% — sustainability is the question.

AVGO generates stronger free cash flow (8.0B), providing more financial flexibility.

Bottom Line

AVGO scores higher overall (78/100 vs 78/100), backed by strong 36.6% margins and 29.5% revenue growth. STNE offers better value entry with a 89.5% margin of safety. Both earn "Strong 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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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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