ADI vs NVDA

For growth investors, NVIDIA Corporation (NVDA) is the stronger pick with 65.

5% revenue growth year-over-year, versus 16. 9% for Analog Devices, Inc. (ADI). NVIDIA Corporation (NVDA) offers the better valuation at 40. 1x trailing P/E (23. 7x forward), making it the more compelling value choice. Analysts rate Analog Devices, Inc. (ADI) a "Buy" — based on 54 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, NVIDIA Corporation (NVDA) is the cheapest at 40.

1x versus Analog Devices, Inc. at 88. 8x. On forward P/E, NVIDIA Corporation is actually cheaper at 23. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: NVIDIA Corporation wins at 0. 25x versus Analog Devices, Inc. 's 5. 20x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, NVIDIA Corporation (NVDA) delivered a total return of +1260%, compared to +174.

2% for Analog Devices, Inc. (ADI). Over 10 years, the gap is even starker: NVDA returned +224. 0% versus ADI's +676. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Analog Devices, Inc.

(ADI) is the lower-risk stock at 1. 44β versus NVIDIA Corporation's 1. 73β — meaning NVDA is approximately 20% more volatile than ADI relative to the S&P 500. On balance sheet safety, NVIDIA Corporation (NVDA) carries a lower debt/equity ratio of 7% versus 26% for Analog Devices, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NVIDIA Corporation (NVDA) is pulling ahead at 65.

5% versus 16. 9% for Analog Devices, Inc. (ADI). On earnings-per-share growth, the picture is similar: NVIDIA Corporation grew EPS 66. 7% year-over-year, compared to 39. 0% for Analog Devices, Inc.. Over a 3-year CAGR, NVDA leads at 100. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

NVIDIA Corporation (NVDA) is the more profitable company, earning 55.

6% net margin versus 20. 6% for Analog Devices, Inc. — meaning it keeps 55. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVDA leads at 60. 4% versus 26. 6% for ADI. At the gross margin level — before operating expenses — NVDA leads at 71. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, NVIDIA Corporation (NVDA) is the more undervalued stock at a PEG of 0. 25x versus Analog Devices, Inc. 's 5. 20x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, NVIDIA Corporation (NVDA) trades at 23. 7x forward P/E versus 35. 4x for Analog Devices, Inc. — 11. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVDA: 41. 9% to $278. 83.

In this comparison, ADI (1.

0% yield) pays a dividend. NVDA does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Analog Devices, Inc.

(ADI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1. 0% yield, +676. 4% 10Y return). NVIDIA Corporation (NVDA) carries a higher beta of 1. 73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ADI: +676. 4%, NVDA: +224. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

ADI pays a dividend while NVDA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.