CDNS vs MTSI

For growth investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger pick with 32. 6% revenue growth year-over-year, versus 14. 1% for Cadence Design Systems, Inc. (CDNS). Cadence Design Systems, Inc. (CDNS) offers the better valuation at 87. 4x trailing P/E (44. 7x forward), making it the more compelling value choice. Analysts rate Cadence Design Systems, Inc. (CDNS) a "Buy" — based on 31 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 forward P/E, Cadence Design Systems, Inc.

is actually cheaper at 44. 7x.

Over the past 5 years, MACOM Technology Solutions Holdings, Inc.

(MTSI) delivered a total return of +470. 3%, compared to +179. 7% for Cadence Design Systems, Inc. (CDNS). Over 10 years, the gap is even starker: CDNS returned +1420% versus MTSI's +700. 5%. 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), Cadence Design Systems, Inc.

(CDNS) is the lower-risk stock at 1. 48β versus MACOM Technology Solutions Holdings, Inc. 's 1. 75β — meaning MTSI is approximately 18% more volatile than CDNS relative to the S&P 500. On balance sheet safety, MACOM Technology Solutions Holdings, Inc. (MTSI) carries a lower debt/equity ratio of 41% versus 45% for Cadence Design Systems, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), MACOM Technology Solutions Holdings, Inc.

(MTSI) is pulling ahead at 32. 6% versus 14. 1% for Cadence Design Systems, Inc. (CDNS). On earnings-per-share growth, the picture is similar: Cadence Design Systems, Inc. grew EPS 5. 5% year-over-year, compared to -170. 2% for MACOM Technology Solutions Holdings, Inc.. Over a 3-year CAGR, CDNS leads at 14. 1% 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.

Cadence Design Systems, Inc.

(CDNS) is the more profitable company, earning 20. 9% net margin versus -5. 6% for MACOM Technology Solutions Holdings, Inc. — meaning it keeps 20. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CDNS leads at 31. 1% versus 13. 4% for MTSI. At the gross margin level — before operating expenses — CDNS leads at 86. 4%, 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.

On forward earnings alone, Cadence Design Systems, Inc.

(CDNS) trades at 44. 7x forward P/E versus 69. 2x for MACOM Technology Solutions Holdings, Inc. — 24. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CDNS: 4. 5% to $370. 83.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Cadence Design Systems, Inc.

(CDNS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1420% 10Y return). MACOM Technology Solutions Holdings, Inc. (MTSI) carries a higher beta of 1. 75 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CDNS: +1420%, MTSI: +700. 5%), 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.

In terms of investment character: CDNS is a mid-cap quality compounder stock; MTSI is a mid-cap high-growth stock. 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.