CDNS vs MTSI vs COHU vs AVGO

For growth investors, MACOM Technology Solutions Holdings, Inc.

(MTSI) is the stronger pick with 32. 6% revenue growth year-over-year, versus 12. 7% for Cohu, Inc. (COHU). Broadcom Inc. (AVGO) offers the better valuation at 86. 5x trailing P/E (36. 5x 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 trailing P/E, Broadcom Inc.

(AVGO) is the cheapest at 86. 5x versus Cadence Design Systems, Inc. at 87. 9x. On forward P/E, Broadcom Inc. is actually cheaper at 36. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Broadcom Inc. wins at 0. 73x versus Cadence Design Systems, Inc. 's 3. 21x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Broadcom Inc.

(AVGO) delivered a total return of +833. 6%, compared to +22. 2% for Cohu, Inc. (COHU). Over 10 years, the gap is even starker: AVGO returned +29. 0% versus COHU's +330. 2%. 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 Cohu, Inc. 's 2. 13β — meaning COHU is approximately 44% 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 80% for Broadcom 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 12. 7% for Cohu, Inc. (COHU). On earnings-per-share growth, the picture is similar: Broadcom Inc. grew EPS 287. 8% year-over-year, compared to -170. 2% for MACOM Technology Solutions Holdings, Inc.. Over a 3-year CAGR, AVGO leads at 24. 4% 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.

Broadcom Inc.

(AVGO) is the more profitable company, earning 36. 2% net margin versus -16. 4% for Cohu, Inc. — meaning it keeps 36. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AVGO leads at 39. 9% versus -13. 3% for COHU. 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.

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, Broadcom Inc. (AVGO) is the more undervalued stock at a PEG of 0. 73x versus Cadence Design Systems, Inc. 's 3. 21x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Broadcom Inc. (AVGO) trades at 36. 5x forward P/E versus 89. 2x for Cohu, Inc. — 52. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 7. 6% to $443. 72.

In this comparison, AVGO (0.

6% yield) pays a dividend. CDNS, MTSI, COHU do not pay a meaningful dividend and should not be held primarily for 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 (+1412% 10Y return). Cohu, Inc. (COHU) carries a higher beta of 2. 13 — 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: +1412%, COHU: +330. 2%), 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; COHU is a small-cap quality compounder stock; AVGO is a mega-cap high-growth stock. AVGO pays a dividend while CDNS, MTSI, COHU do 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.