Broadcom Inc (AVGO)vsUnited Microelectronics (UMC)
AVGO
Broadcom Inc
$361.99
-4.77%
TECHNOLOGY · Cap: $1.73T
UMC
United Microelectronics
$22.64
-3.27%
TECHNOLOGY · Cap: $56.78B
Smart Verdict
WallStSmart Research — data-driven comparison
United Microelectronics generates 181% more annual revenue ($250.71B vs $89.10B). AVGO leads profitability with a 42.9% profit margin vs 33.3%. AVGO appears more attractively valued with a PEG of 0.36. AVGO earns a higher WallStSmart Score of 80/100 (A-).
AVGO
Exceptional Buy80
out of 100
Grade: A-
UMC
Strong Buy77
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AVGO.
Margin of Safety
+11.2%
Fair Value
$25.50
Current Price
$22.64
$2.86 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Growing faster than its price suggests
Every $100 of equity generates 38 in profit
Keeps 43 of every $100 in revenue as profit
Strong operational efficiency at 54.3%
Revenue surging 85.5% year-over-year
Keeps 33 of every $100 in revenue as profit
Earnings expanding 374.6% YoY
Generating 24.2B in free cash flow
Large-cap with strong market position
Conservative balance sheet, low leverage
Strong operational efficiency at 21.7%
Areas to Watch
Trading at 17.3x book value
Distress zone — elevated risk
Premium valuation, high expectations priced in
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : UMC
The strongest argument for UMC centers on Profit Margin, EPS Growth, Free Cash Flow. Profitability is solid with margins at 33.3% and operating margin at 21.7%. Revenue growth of 17.0% demonstrates continued momentum.
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 : UMC
The primary concerns for UMC are Piotroski F-Score.
Key Dynamics to Monitor
UMC carries more volatility with a beta of 1.70 — expect wider price swings.
AVGO is growing revenue faster at 85.5% — sustainability is the question.
UMC generates stronger free cash flow (24.2B), providing more financial flexibility.
Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AVGO scores higher overall (80/100 vs 77/100), backed by strong 42.9% margins and 85.5% revenue growth. 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 →United Microelectronics
TECHNOLOGY · SEMICONDUCTORS · USA
United Microelectronics Corporation is a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company is headquartered in Hsinchu City, Taiwan.
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