AVGO
Broadcom Inc.
AVGO has the edge over IBM overall, supported by stronger fundamentals and stronger modeled upside.
IBM
International Business Machines Corporation
IBM has slightly lower modeled downside risk, despite its lower overall score.
AVGO Fundamentals
| Metric | Status |
|---|---|
| Strong | |
| Strong | |
| Strong | |
| Strong |
AVGO's revenue, profitability, cash flow and balance sheet are all currently strong.
IBM Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Under pressure |
IBM's profitability and cash flow are currently strong, and its revenue is stable, but its balance sheet is under pressure.
AVGO PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 19x | $364 | — |
| Cheap | 27x | $211 | -42% |
| Current | 46x | $364 | — |
| Fair | 49x | $384 | +5.3% |
| Expensive | 86x | $671 | +84% |
Historical ranges are pointers, not guarantees.
AVGO's PE is in its fair range at 46x. If earnings grow as analysts expect, today's price would be 19x next year's earnings, in its cheap range.
IBM PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 17x | $194 | -21% |
| Forward | 19x | $245 | — |
| Current | 21x | $245 | — |
| Fair | 23x | $274 | +12% |
| Expensive | 46x | $538 | +120% |
Historical ranges are pointers, not guarantees.
IBM has the edge over AVGO in the historical PE scenario, which offers more potential upside but is not a forecast.
AVGO Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Stable | |
| Broad | |
| Moderate |
Analysts expect strong earnings and revenue growth for AVGO, with profitability holding steady.
IBM Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Stable | |
| Improving | |
| Moderate | |
| Moderate |
Analysts expect IBM's earnings to grow and its profitability to improve, with its revenue holding steady.
AVGO Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $19.23 | +145% |
| Q3 2026 | $7.84 | +100% |
| Q2 2026 | $6.01 | +125% |
| Q1 2026 | $5.13 | +145% |
| Q4 2025 | $4.77 | +288% |
| Q3 2025 | $3.92 | +241% |
| Q2 2025 | $2.67 | +15% |
| Q1 2025 | $2.09 | -23% |
| Q4 2024 | $1.23 | -63% |
AVGO has the edge over IBM on earnings, with more consistent year-over-year improvement.
IBM Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $13.06 | +11% |
| Q3 2026 | $11.75 | +40% |
| Q2 2026 | $11.29 | +83% |
| Q1 2026 | $11.33 | +94% |
| Q4 2025 | $11.17 | +74% |
| Q3 2025 | $8.38 | +22% |
| Q2 2025 | $6.18 | -32% |
| Q1 2025 | $5.83 | -34% |
| Q4 2024 | $6.43 | -21% |
IBM earned $11.75 per share over the past year, up 40% from the year before.
AVGO Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $29.6B | +86% |
| Q2 2026 | $22.2B | +48% |
| Q1 2026 | $19.3B | +29% |
| Q4 2025 | $18B | +28% |
| Q3 2025 | $16B | +22% |
| Q2 2025 | $15B | +20% |
| Q1 2025 | $14.9B | +25% |
| Q4 2024 | $14.1B | +51% |
AVGO has the edge over IBM on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 54% | +17 points |
| Q2 2026 | 49% | +9.8 points |
| Q1 2026 | 44% | +2.4 points |
| Q4 2025 | 42% | +8.8 points |
| Q3 2025 | 37% | +7.9 points |
| Q2 2025 | 39% | +15 points |
| Q1 2025 | 42% | +25 points |
| Q4 2024 | 33% | -13 points |
AVGO has the edge over IBM on profitability, with a higher operating margin.
IBM Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $17.1B | +4.7% |
| Q2 2026 | $17.2B | +1.1% |
| Q1 2026 | $15.9B | +9.5% |
| Q4 2025 | $19.7B | +12% |
| Q3 2025 | $16.3B | +9.1% |
| Q2 2025 | $17B | +7.7% |
| Q1 2025 | $14.5B | +0.5% |
| Q4 2024 | $17.6B | +1% |
IBM's revenue has grown year over year for 13 quarters in a row: $17.1B last quarter, up 4.7% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 15% | -0.3 points |
| Q2 2026 | 14% | -0.9 points |
| Q1 2026 | 8.7% | +0.8 points |
| Q4 2025 | 21% | +2.2 points |
| Q3 2025 | 15% | +20 points |
| Q2 2025 | 15% | +1.2 points |
| Q1 2025 | 8% | +0.5 points |
| Q4 2024 | 19% | -2.8 points |
IBM's operating margin was 15% last quarter, about level with the same quarter a year ago.
AVGO Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $13.7B | +95% |
| Q2 2026 | $10.3B | +60% |
| Q1 2026 | $8B | +33% |
| Q4 2025 | $7.5B | +36% |
| Q3 2025 | $7B | +47% |
| Q2 2025 | $6.4B | +44% |
| Q1 2025 | $6B | +28% |
| Q4 2024 | $5.5B | +16% |
AVGO has the edge over IBM on cash flow, with more consistent year-over-year improvement.
IBM Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $3.7B | +31% |
| Q2 2026 | $2.4B | +59% |
| Q1 2026 | $4.9B | +20% |
| Q4 2025 | $3.7B | -9.2% |
| Q3 2025 | $2.8B | +8.9% |
| Q2 2025 | $1.5B | -19% |
| Q1 2025 | $4.1B | +5% |
| Q4 2024 | $4B | -3.3% |
IBM's free cash flow has been positive every quarter for seven years: $14.7B over the past year, up 18% from the year before.
AVGO Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +0.2% | +11M shares |
| 1 year | +0.6% | +27M shares |
| 3 years | +14% | +617M shares |
| 5 years | +14% | +597M shares |
| Available history | +17% | +697M shares |
AVGO has 4.9B diluted shares, up 0.6% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | $600M |
| Q1 2026 | $7.9B |
| Q4 2025 | — |
| Q3 2025 | — |
| Q2 2025 | $2.5B |
| Q1 2025 | — |
| Q4 2024 | — |
AVGO spent $8.4B buying back its own shares over the past year, about three times what it spent the year before.
IBM Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | +260K shares |
| 1 year | +0.5% | +4.6M shares |
| 3 years | +3.2% | +29.9M shares |
| 5 years | +5.3% | +47.6M shares |
| Available history | +2.1% | +19.6M shares |
IBM has the edge over AVGO on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q4 2019 | — |
AVGO Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.7x | Very low |
| Q2 2026 | 1.2x | Healthy |
| Q1 2026 | 1.7x | Healthy |
| Q4 2025 | 1.9x | Healthy |
| Q3 2025 | 2.3x | Moderate |
| Q2 2025 | 2.7x | Moderate |
| Q1 2025 | 3.1x | Elevated |
| Q4 2024 | 4.1x | High |
AVGO has the edge over IBM on leverage, with a lower net debt burden relative to earnings.
IBM Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 3.9x | Elevated |
| Q2 2026 | 3.9x | Elevated |
| Q1 2026 | 4.0x | High |
| Q4 2025 | 3.5x | Elevated |
| Q3 2025 | 4.2x | High |
| Q2 2025 | 5.5x | High |
| Q1 2025 | 5.6x | High |
| Q4 2024 | 4.4x | High |
IBM's net debt is about 3.9 years of its operating earnings (EBITDA), down from 4.2 years a year ago.
AVGO Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 51.3 | Neutral |
| Stochastic | 20.3 | Neutral |
AVGO's weekly RSI is 51 (neutral) and its Stochastic is 20 (neutral).
IBM Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 50.1 | Neutral |
| Stochastic | 74.8 | Neutral |
IBM's weekly RSI is 50 (neutral) and its Stochastic is 75 (neutral).
AVGO PE vs Technology Sector
| Metric | AVGO | Sector median | Relative |
|---|---|---|---|
| PE | 46x | 28x | 67% above |
| PE % | 47 | 35 | 12 pts above |
AVGO is trading at 46x earnings, a 67% premium to the Technology sector's median of 28x.
IBM PE vs Technology Sector
| Metric | IBM | Sector median | Relative |
|---|---|---|---|
| PE | 21x | 28x | 25% below |
| PE % | 31 | 35 | 4 pts below |
IBM has the edge over AVGO on valuation relative to its sector.
AVGO Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $338.0 | 7.8% above |
| 20 week MA | $362.1 | 0.6% above |
| 50 week MA | $363.0 | 0.4% above |
| 100 week MA | $313.8 | 16% above |
| 200 week MA | $214.3 | 70% above |
AVGO has the edge over IBM on trend strength, trading above more of its moving averages.
IBM Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $238.6 | 2.6% above |
| 20 week MA | $239.3 | 2.2% above |
| 50 week MA | $256.6 | 4.6% below |
| 100 week MA | $258.5 | 5.3% below |
| 200 week MA | $212.3 | 15% above |
IBM's trend is mixed: it's above three of its five weekly moving averages, and 15% above its 200-week average.
AVGO Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $31.7 | $43.2 | +36% |
| 2021 | $43.2 | $66.5 | +54% |
| 2022 | $66.5 | $55.2 | -17% |
| 2023 | $55.2 | $111.6 | +102% |
| 2024 | $111.6 | $241.8 | +117% |
| 2025 | $241.8 | $352.1 | +46% |
| 2026 YTD | $352.1 | $364.4 | +3.5% |
AVGO has the edge over IBM on returns for 2026, with the stronger performance.
IBM Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $129.3 | $119.2 | -7.8% |
| 2021 | $119.2 | $130.6 | +9.6% |
| 2022 | $130.6 | $141.7 | +8.4% |
| 2023 | $141.7 | $163.6 | +15% |
| 2024 | $163.6 | $222.8 | +36% |
| 2025 | $222.8 | $305.1 | +37% |
| 2026 YTD | $305.1 | $244.7 | -20% |
IBM has finished higher in five of the last six years. It's down 20% so far in 2026.