Compare Stocks › AVGO vs CDNS
Broadcom Inc. (AVGO) vs Cadence Design Systems, Inc. (CDNS)
AVGO
Broadcom Inc.
$319.84
VS
CDNS
Cadence Design Systems, Inc.
$287.40
Rewards
AVGO
- ★Gross margin of 76.7% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 18.2% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $97.03 of market value — management is an exceptional capital allocator.
CDNS
- ★Cadence Design Systems, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Gross margin of 86.4% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Cadence Design Systems, Inc. scores 91/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
Risks
AVGO
- ⚠Share count has increased by 13% over the past 4 years, diluting existing shareholders.
- ⚠FCF yield of 1.7% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠6 insider sales totaling $102.2M with no purchases in the past 3 months — insiders are reducing their exposure.
CDNS
- ⚠FCF yield of 1.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠PEG ratio of 4.86 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
- ⚠5 insider sales totaling $2.9M with no purchases in the past 3 months — insiders are reducing their exposure.
Key Valuation Metrics
Learn more →AVGO
CDNS
Valuation
$25.50B
Free Cash Flow
$1.51B
1.68%
FCF Yield
1.90%
62.47
Trailing P/E
70.96
18.10
Forward P/E
30.57
Quality & Moat
26.43%
ROIC
16.87%
94.91%
ROE
20.26%
76.73%
Gross Margin
86.36%
0.33
PEG Ratio
4.86
Balance Sheet Safety
1.66
Debt / Equity
0.49
N/A
Interest Coverage
N/A
0.79
Net Debt / EBITDA
-0.26
0.81%
Dividend Yield
N/A
AVGO: 6Ties: 1CDNS: 4
AVGOCDNS
Historical Fundamentals
Learn more →AVGO
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
CDNS
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
$1 Retained Earnings Test
Learn more →AVGO
$97.03
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$14.50B
Δ Market Cap
+$1.41T
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
CDNS
$12.84
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$3.21B
Δ Market Cap
+$41.16B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →AVGO
8.2% Margin of Safety
Price is 8.2% below estimated fair value
Current Price: $319.84
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Fair Value: $348.43
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
CDNS
68.2% Overvalued
Price is 68.2% above estimated fair value
Current Price: $287.40
Strongly undervalued
Fairly valued
Strongly overvalued
Fair Value: $170.90
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
Reverse DCF — Market-Implied Growth
Learn more →AVGO
What growth rate is the market pricing in at $320?
+24.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +22.9%
The market implies +24.2% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +22.9%, reflecting ongoing growth investment.
CDNS
What growth rate is the market pricing in at $287?
+25.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +20.8%
The market implies +25.1% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +20.8%, reflecting heavy growth investment.
Economic Moat Score
Learn more →AVGO
61/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None
Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
CDNS
91/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None
Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.
Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
Forensic Accounting
Learn more →AVGO
-2.09
Possible Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
CDNS
-2.52
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →AVGO
Insiders 2.0%Institutions 79.5%Retail & Other 18.5%
No. of Institutional Holders5,996
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
CDNS
Insiders 0.3%Institutions 90.2%Retail & Other 9.5%
No. of Institutional Holders2,099
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →AVGO
0
Buys (3M)
2
Buys (12M)
Total value (12M): $1.55M
YOU HARRY L
Director
$325,129
@ $325.13 · 2025-12-18
YOU HARRY L
Director
$1.23M
@ $345.88 · 2025-09-10
Open market purchases · includes direct & indirect ownership · excludes option exercises
CDNS
0
Buys (3M)
1
Buys (12M)
Total value (12M): $13,875
GAVRIELOV MOSHE NACHUM
Director
$13,875
@ $256.94 · 2025-03-28
Open market purchases · includes direct & indirect ownership · excludes option exercises
Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →AVGO
6
Sells (3M)
28
Sells (12M)
Total value (12M): $206.93M
VELAGA S. RAM
Officer
$20.82M
@ $323.38 · 2026-03-17
BRAZEAL MARK DAVID
Officer
$27.06M
@ $323.39 · 2026-03-17
BRAZEAL MARK DAVID
Officer
$10.41M
@ $347.12 · 2026-01-06
TAN HOCK E
Chief Executive Officer
$24.31M
@ $347.30 · 2026-01-06
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$10.43M
@ $347.82 · 2025-12-31
BRAZEAL MARK DAVID
Officer
$9.13M
@ $352.07 · 2025-12-26
KAWWAS CHARLIE B
Officer
$1.05M
@ $332.95 · 2025-12-17
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$2.03M
@ $332.91 · 2025-12-17
BRAZEAL MARK DAVID
Officer
$12.54M
@ $327.65 · 2025-12-17
BRAZEAL MARK DAVID
Officer
$8.36M
@ $340.91 · 2025-12-16
PAGE JUSTINE F.
Director
$289,512
@ $361.89 · 2025-12-15
PAGE JUSTINE F.
Director
$264,912
@ $331.14 · 2025-11-14
PAGE JUSTINE F.
Director
$280,120
@ $350.15 · 2025-10-14
KAWWAS CHARLIE B
Officer
$2.26M
@ $352.74 · 2025-09-17
BRAZEAL MARK DAVID
Officer
$9.59M
@ $352.61 · 2025-09-17
PAGE JUSTINE F.
Director
$288,000
@ $360.00 · 2025-09-15
PAGE JUSTINE F.
Director
$245,968
@ $307.46 · 2025-08-14
PAGE JUSTINE F.
Director
$219,440
@ $274.30 · 2025-07-14
DELLY GAYLA J
Director
$795,390
@ $265.13 · 2025-06-26
TAN HOCK E
Chief Executive Officer
$10.73M
@ $268.29 · 2025-06-26
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$9.50M
@ $261.27 · 2025-06-24
BRAZEAL MARK DAVID
Officer
$13.11M
@ $262.10 · 2025-06-24
BRAZEAL MARK DAVID
Officer
$12.66M
@ $253.28 · 2025-06-23
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$14.18M
@ $251.75 · 2025-06-18
PAGE JUSTINE F.
Director
$200,280
@ $250.35 · 2025-06-16
PAGE JUSTINE F.
Director
$184,152
@ $230.19 · 2025-05-14
PAGE JUSTINE F.
Director
$148,000
@ $185.00 · 2025-04-14
BRAZEAL MARK DAVID
Officer
$5.84M
@ $194.65 · 2025-03-24
LOW CHECK KIAN
Director
$11.30M
@ $235.35 · 2025-01-06
BRAZEAL MARK DAVID
Officer
$4.82M
@ $238.79 · 2024-12-24
TAN HOCK E
Chief Executive Officer
$10.80M
@ $239.96 · 2024-12-24
BRYANT DIANE M
Director
$3.40M
@ $226.68 · 2024-12-23
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$2.89M
@ $229.62 · 2024-12-20
YOU HARRY L
Director
$1.57M
@ $240.00 · 2024-12-17
BRAZEAL MARK DAVID
Officer
$3.43M
@ $181.45 · 2024-10-11
BRAZEAL MARK DAVID
Officer
$3.46M
@ $182.88 · 2024-10-09
BRAZEAL MARK DAVID
Officer
$3.59M
@ $177.10 · 2024-10-07
DELLY GAYLA J
Director
$130,898
@ $174.53 · 2024-09-25
PAGE JUSTINE F.
Director
$444,566
@ $1750.26 · 2024-06-20
PAGE JUSTINE F.
Director
$561,600
@ $1800.00 · 2024-06-17
BRAZEAL MARK DAVID
Officer
$3.29M
@ $1316.46 · 2024-04-10
PAGE JUSTINE F.
Director
$145,530
@ $1323.00 · 2024-04-10
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$4.03M
@ $1343.14 · 2024-04-05
BRAZEAL MARK DAVID
Officer
$3.42M
@ $1367.52 · 2024-04-03
TAN HOCK E
Chief Executive Officer
$2.62M
@ $1312.25 · 2024-04-02
BRAZEAL MARK DAVID
Officer
$3.30M
@ $1318.98 · 2024-03-28
KAWWAS CHARLIE B
Officer
$6.72M
@ $1344.00 · 2024-03-25
BRAZEAL MARK DAVID
Officer
$3.38M
@ $1352.35 · 2024-03-25
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
CDNS
5
Sells (3M)
31
Sells (12M)
Total value (12M): $45.08M
CUNNINGHAM PAUL ALEXANDER
Officer
$297,780
@ $297.78 · 2026-03-02
CUNNINGHAM PAUL ALEXANDER
Officer
$295,090
@ $295.09 · 2026-02-02
GAVRIELOV MOSHE NACHUM
Director
$7,898
@ $315.92 · 2026-01-21
TENG CHIN-CHI
Officer
$2.01M
@ $317.96 · 2026-01-08
CUNNINGHAM PAUL ALEXANDER
Officer
$315,700
@ $315.70 · 2026-01-02
WALL JOHN M
Chief Financial Officer
$8.86M
@ $318.57 · 2025-12-16
SCANNELL PAUL
Officer
$1.86M
@ $339.43 · 2025-12-10
BRENNAN ITA M
Director
$60,747
@ $337.48 · 2025-12-10
TENG CHIN-CHI
Officer
$2.02M
@ $337.99 · 2025-12-08
DEVGAN ANIRUDH
Chief Executive Officer
$6.80M
@ $340.00 · 2025-12-05
CUNNINGHAM PAUL ALEXANDER
Officer
$312,640
@ $312.64 · 2025-12-01
TENG CHIN-CHI
Officer
$1.88M
@ $324.94 · 2025-11-06
DEVGAN ANIRUDH
Chief Executive Officer
$1.82M
@ $327.80 · 2025-11-05
CUNNINGHAM PAUL ALEXANDER
Officer
$340,260
@ $340.26 · 2025-11-03
CUNNINGHAM PAUL ALEXANDER
Officer
$348,270
@ $348.27 · 2025-10-01
WALL JOHN M
Chief Financial Officer
$2.62M
@ $349.16 · 2025-09-30
BRENNAN ITA M
Director
$60,213
@ $334.52 · 2025-09-10
CUNNINGHAM PAUL ALEXANDER
Officer
$343,950
@ $343.95 · 2025-09-02
TENG CHIN-CHI
Officer
$2.94M
@ $350.10 · 2025-08-18
CUNNINGHAM PAUL ALEXANDER
Officer
$358,720
@ $358.72 · 2025-08-01
TENG CHIN-CHI
Officer
$2.84M
@ $312.69 · 2025-07-17
CUNNINGHAM PAUL ALEXANDER
Officer
$306,350
@ $306.35 · 2025-07-01
TENG CHIN-CHI
Officer
$2.68M
@ $300.92 · 2025-06-17
CUNNINGHAM PAUL ALEXANDER
Officer
$302,000
@ $302.00 · 2025-06-13
BRENNAN ITA M
Director
$54,720
@ $304.00 · 2025-06-10
CUNNINGHAM PAUL ALEXANDER
Officer
$185,880
@ $285.97 · 2025-06-02
DEVGAN ANIRUDH
Chief Executive Officer
$3.33M
@ $310.00 · 2025-05-02
CUNNINGHAM PAUL ALEXANDER
Officer
$196,950
@ $303.00 · 2025-05-01
SCANNELL PAUL
Officer
$1.41M
@ $300.00 · 2025-04-29
BRENNAN ITA M
Director
$49,500
@ $275.00 · 2025-04-24
CUNNINGHAM PAUL ALEXANDER
Officer
$164,216
@ $252.64 · 2025-04-01
NISEWANER KARNA
General Counsel
$455,562
@ $246.25 · 2025-03-17
CUNNINGHAM PAUL ALEXANDER
Officer
$164,274
@ $252.73 · 2025-03-03
NISEWANER KARNA
General Counsel
$169,073
@ $296.10 · 2025-02-18
TENG CHIN-CHI
Officer
$3.88M
@ $303.94 · 2025-02-10
CUNNINGHAM PAUL ALEXANDER
Officer
$190,008
@ $292.32 · 2025-02-03
DEVGAN ANIRUDH
Chief Executive Officer
$28.88M
@ $310.00 · 2025-01-06
TENG CHIN-CHI
Officer
$3.75M
@ $299.85 · 2025-01-03
CUNNINGHAM PAUL ALEXANDER
Officer
$198,146
@ $304.84 · 2025-01-02
DEVGAN ANIRUDH
Chief Executive Officer
$1.80M
@ $304.04 · 2025-01-02
WALL JOHN M
Chief Financial Officer
$1.31M
@ $309.03 · 2024-12-18
SCANNELL PAUL
Officer
$969,628
@ $305.78 · 2024-12-13
CUNNINGHAM PAUL ALEXANDER
Officer
$199,024
@ $306.19 · 2024-12-02
TENG CHIN-CHI
Officer
$1.79M
@ $310.17 · 2024-11-22
TENG CHIN-CHI
Officer
$2.96M
@ $295.60 · 2024-11-15
SANGIOVANNI VINCENTELLI ALBERTO
Director
$447,675
@ $298.45 · 2024-11-15
CUNNINGHAM PAUL ALEXANDER
Officer
$179,400
@ $276.00 · 2024-11-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$425,490
@ $283.66 · 2024-10-15
WALL JOHN M
Chief Financial Officer
$6,589
@ $263.56 · 2024-10-08
CUNNINGHAM PAUL ALEXANDER
Officer
$177,736
@ $273.44 · 2024-10-01
NISEWANER KARNA
General Counsel
$181,871
@ $275.98 · 2024-09-17
SANGIOVANNI VINCENTELLI ALBERTO
Director
$413,970
@ $275.98 · 2024-09-17
CUNNINGHAM PAUL ALEXANDER
Officer
$173,478
@ $266.89 · 2024-09-03
WALL JOHN M
Chief Financial Officer
$2.66M
@ $265.91 · 2024-08-28
NISEWANER KARNA
General Counsel
$339,021
@ $279.49 · 2024-08-16
TENG CHIN-CHI
Officer
$2.76M
@ $276.36 · 2024-08-15
SANGIOVANNI VINCENTELLI ALBERTO
Director
$414,360
@ $276.24 · 2024-08-15
CUNNINGHAM PAUL ALEXANDER
Officer
$173,056
@ $266.24 · 2024-08-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$471,855
@ $314.57 · 2024-07-15
NISEWANER KARNA
General Counsel
$184,650
@ $307.75 · 2024-07-01
CUNNINGHAM PAUL ALEXANDER
Officer
$200,038
@ $307.75 · 2024-07-01
TENG CHIN-CHI
Officer
$3.06M
@ $305.84 · 2024-07-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$463,635
@ $309.09 · 2024-06-14
CUNNINGHAM PAUL ALEXANDER
Officer
$191,750
@ $295.00 · 2024-06-11
TENG CHIN-CHI
Officer
$9.57M
@ $297.45 · 2024-06-06
NISEWANER KARNA
General Counsel
$172,386
@ $287.31 · 2024-06-03
SANGIOVANNI VINCENTELLI ALBERTO
Director
$430,705
@ $287.14 · 2024-05-15
NISEWANER KARNA
General Counsel
$165,216
@ $275.36 · 2024-05-01
CUNNINGHAM PAUL ALEXANDER
Officer
$275,360
@ $275.36 · 2024-05-01
SANGIOVANNI VINCENTELLI ALBERTO
Director
$463,238
@ $308.83 · 2024-04-15
NISEWANER KARNA
General Counsel
$186,276
@ $310.46 · 2024-04-01
CUNNINGHAM PAUL ALEXANDER
Officer
$310,460
@ $310.46 · 2024-04-01
WALL JOHN M
Chief Financial Officer
$6.76M
@ $311.40 · 2024-03-28
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →AVGO
😐Neutral(51/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
CDNS
😐Neutral(42/100)
"Market is pricing this stock without strong emotion in either direction"
Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →AVGO
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (51)
CDNS
⚪Awaiting DCF Data
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
DCF Margin of Safety: N/AMr. Market's Mood: Neutral (42)