Compare StocksAVGO vs TER

Broadcom Inc. (AVGO) vs Teradyne, Inc. (TER)

AVGO
Broadcom Inc.
$415.26
VS
TER
Teradyne, Inc.
$339.46

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 $8.91 of earning power — management is an exceptional capital allocator.
TER
  • Teradyne, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • PEG ratio of 0.20 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • Altman Z-Score of 14.86 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

AVGO
  • Share count has increased by 13% over the past 4 years, diluting existing shareholders.
  • FCF yield of 1.3% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • PEG ratio of 2.56 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
TER
  • FCF yield of 0.8% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • Trailing P/E of 63.0x is 69% above the historical average of 37.3x — the stock trades at a premium to its own history.
  • 6 insider sales with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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AVGO
TER
Valuation
$25.50B
Free Cash Flow
$450.41M
1.30%
FCF Yield
0.85%
80.79
Trailing P/E
62.98
22.92
Forward P/E
35.68
Quality & Moat
16.61%
ROIC
34.88%
28.95%
ROE
17.62%
76.73%
Gross Margin
58.70%
2.56
PEG Ratio
0.20
Balance Sheet Safety
0.83
Debt / Equity
0.03
N/A
Interest Coverage
N/A
1.39
Net Debt / EBITDA
-0.14
0.62%
Dividend Yield
0.15%
AVGO: 6Ties: 1TER: 5
AVGOTER

Historical Fundamentals

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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.

TER

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

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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
TER
$12.54
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$1.32B
Δ Market Cap
+$16.61B
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

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

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AVGO
20.7% Overvalued
Price is 20.7% above estimated fair value
Current Price: $415.26
Fair Value: $344.16
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
TER
31.4% Overvalued
Price is 31.4% above estimated fair value
Current Price: $339.46
Fair Value: $258.33
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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AVGO

What growth rate is the market pricing in at $415?

+28.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +26.6%

The market implies +28.0% Owner Earnings growth, roughly in line with history — reasonably priced.

Standard FCF implies +26.6%, reflecting ongoing growth investment.

TER

What growth rate is the market pricing in at $339?

+29.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +32.2%

The market implies +29.3% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +32.2%, reflecting heavy growth investment.

Economic Moat Score

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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.
TER
69/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability 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.

Forensic Accounting

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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.
TER
-2.76
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

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AVGO
Insiders 2.0%Institutions 79.7%Retail & Other 18.3%
No. of Institutional Holders6,004
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.
TER
Insiders 0.2%Institutions 97.6%Retail & Other 2.2%
No. of Institutional Holders1,536
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

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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
TER
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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AVGO
8
Sells (3M)
32
Sells (12M)
Total value (12M): $256.03M
VELAGA S. RAM
Officer
$2.96M
@ $370.52 · 2026-04-10
VELAGA S. RAM
Officer
$10.64M
@ $352.08 · 2026-04-09
DELLY GAYLA J
Director
$358,310
@ $358.31 · 2026-04-09
PAGE JUSTINE F.
Director
$712,354
@ $353.00 · 2026-04-08
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$19.45M
@ $323.38 · 2026-03-17
VELAGA S. RAM
Officer
$20.82M
@ $323.38 · 2026-03-17
KAWWAS CHARLIE B
Officer
$20.97M
@ $323.39 · 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
SPEARS KIRSTEN MARGRETA
Chief Financial Officer
$2.03M
@ $332.91 · 2025-12-17
KAWWAS CHARLIE B
Officer
$1.05M
@ $332.95 · 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
TAN HOCK E
Chief Executive Officer
$10.73M
@ $268.29 · 2025-06-26
DELLY GAYLA J
Director
$795,390
@ $265.13 · 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
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
TER
6
Sells (3M)
20
Sells (12M)
Total value (12M): $2.52M
MILLS REGAN
Officer
$5,475
@ $342.19 · 2026-04-08
JOHNSON MERCEDES
Director
$195,125
@ $312.20 · 2026-04-06
MILLS REGAN
Officer
$73,302
@ $290.88 · 2026-04-02
JOHNSON MERCEDES
Director
$187,000
@ $299.20 · 2026-03-05
MILLS REGAN
Officer
$262,302
@ $332.87 · 2026-02-25
JOHNSON MERCEDES
Director
$166,862
@ $266.98 · 2026-02-05
JOHNSON MERCEDES
Director
$132,406
@ $211.85 · 2026-01-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$223,051
@ $201.31 · 2025-12-12
JOHNSON MERCEDES
Director
$125,000
@ $200.00 · 2025-12-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$199,662
@ $180.20 · 2025-11-12
JOHNSON MERCEDES
Director
$110,656
@ $177.05 · 2025-11-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$160,926
@ $145.24 · 2025-10-10
JOHNSON MERCEDES
Director
$92,438
@ $147.90 · 2025-10-06
SMITH GREGORY STEPHEN
Chief Executive Officer
$70,020
@ $126.39 · 2025-09-22
SMITH GREGORY STEPHEN
Chief Executive Officer
$63,710
@ $115.00 · 2025-09-12
JOHNSON MERCEDES
Director
$75,038
@ $120.06 · 2025-09-05
SMITH GREGORY STEPHEN
Chief Executive Officer
$58,724
@ $106.00 · 2025-08-12
JOHNSON MERCEDES
Director
$66,250
@ $106.00 · 2025-08-05
JOHNSON MERCEDES
Director
$198,244
@ $105.73 · 2025-07-30
SMITH GREGORY STEPHEN
Chief Executive Officer
$58,574
@ $105.73 · 2025-07-30
JOHNSON MERCEDES
Director
$69,350
@ $110.96 · 2025-03-03
MEHTA SANJAY
Chief Financial Officer
$154,302
@ $111.49 · 2025-02-04
DRISCOLL RYAN E
General Counsel
$24,082
@ $111.49 · 2025-02-04
BURNS RICHARD JOHN
Officer
$49,613
@ $111.49 · 2025-02-04
JOHNSON MERCEDES
Director
$70,362
@ $112.58 · 2025-02-03
MEHTA SANJAY
Chief Financial Officer
$62,628
@ $102.00 · 2025-01-30
DRISCOLL RYAN E
Officer
$44,574
@ $102.00 · 2025-01-30
MEHTA SANJAY
Chief Financial Officer
$656,040
@ $122.90 · 2025-01-29
DRISCOLL RYAN E
General Counsel
$9,340
@ $122.89 · 2025-01-29
BURNS RICHARD JOHN
Officer
$181,523
@ $122.90 · 2025-01-29
MEHTA SANJAY
Chief Financial Officer
$215,592
@ $120.51 · 2025-01-28
DRISCOLL RYAN E
General Counsel
$12,895
@ $120.51 · 2025-01-28
BURNS RICHARD JOHN
Officer
$49,048
@ $120.51 · 2025-01-28
BURNS RICHARD JOHN
Officer
$49,048
@ $120.51 · 2025-01-28
SMITH GREGORY STEPHEN
Chief Executive Officer
$400,400
@ $130.00 · 2025-01-03
JOHNSON MERCEDES
Director
$79,225
@ $126.76 · 2025-01-02
SMITH GREGORY STEPHEN
Chief Executive Officer
$400,400
@ $130.00 · 2024-12-16
JOHNSON MERCEDES
Director
$68,775
@ $110.04 · 2024-12-02
JOHNSON MERCEDES
Director
$69,638
@ $111.42 · 2024-11-07
BURNS RICHARD JOHN
Officer
$129,548
@ $132.19 · 2024-10-02
JOHNSON MERCEDES
Director
$83,000
@ $132.80 · 2024-10-01
SMITH GREGORY STEPHEN
Chief Executive Officer
$409,024
@ $132.80 · 2024-10-01
SMITH GREGORY STEPHEN
Chief Executive Officer
$400,400
@ $130.00 · 2024-09-11
JOHNSON MERCEDES
Director
$83,431
@ $133.49 · 2024-09-03
MEHTA SANJAY
Chief Financial Officer
$818,718
@ $133.06 · 2024-08-20
JOHNSON MERCEDES
Director
$80,481
@ $128.77 · 2024-08-01
JOHNSON MERCEDES
Director
$92,500
@ $148.00 · 2024-07-01
JOHNSON MERCEDES
Director
$89,900
@ $143.84 · 2024-06-03
BURNS RICHARD JOHN
Officer
$688,880
@ $137.64 · 2024-05-20
JOHNSON MERCEDES
Director
$75,750
@ $121.20 · 2024-05-06
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

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AVGO
FearGreed
😏Greed(68/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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.
TER
FearGreed
😐Neutral(44/100)

"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

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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: Greed (68)
TER
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 (44)
View AVGO Full AnalysisView TER Full Analysis