Compare Analog Devices, Inc. (ADI) vs QUALCOMM Incorporated (QCOM) Stock

QUALCOMM Incorporated (QCOM) offers the better valuation at 28.4x trailing P/E (12.7x 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, QUALCOMM Incorporated (QCOM) is the cheapest at 28.4x versus Analog Devices, Inc. at 78.0x. On forward P/E, QUALCOMM Incorporated is actually cheaper at 12.7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Analog Devices, Inc. wins at 4.62x versus QUALCOMM Incorporated's 6.13x.

Over the past 5 years, Analog Devices, Inc. (ADI) delivered a total return of +134.6%, compared to +13.3% for QUALCOMM Incorporated (QCOM). A $10,000 investment in ADI five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ADI returned +621.4% versus QCOM's +234.4%. 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), QUALCOMM Incorporated (QCOM) is the lower-risk stock at 1.48β versus Analog Devices, Inc.'s 1.55β — meaning ADI is approximately 5% more volatile than QCOM relative to the S&P 500. On balance sheet safety, Analog Devices, Inc. (ADI) carries a lower debt/equity ratio of 26% versus 77% for QUALCOMM Incorporated — giving it more financial flexibility in a downturn.

Analog Devices, Inc. (ADI) is the more profitable company, earning 20.6% net margin versus 12.5% for QUALCOMM Incorporated — meaning it keeps 20.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: QCOM leads at 27.9% versus 26.6% for ADI. At the gross margin level — before operating expenses — ADI leads at 61.5%, 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, Analog Devices, Inc. (ADI) is the more undervalued stock at a PEG of 4.62x versus QUALCOMM Incorporated's 6.13x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, QUALCOMM Incorporated (QCOM) trades at 12.7x forward P/E versus 31.5x for Analog Devices, Inc. — 18.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for QCOM: 13.4% to $161.50.

All stocks in this comparison pay dividends. QUALCOMM Incorporated (QCOM) offers the highest yield at 2.4%, versus 1.1% for Analog Devices, Inc. (ADI).

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 (1.1% yield, +621.4% 10Y return). Both have compounded well over 10 years (ADI: +621.4%, QCOM: +234.4%), 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. 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.