CDNS vs SNPS vs MTSI vs PEGA vs PTC

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). Pegasystems Inc. (PEGA) offers the better valuation at 17. 3x trailing P/E (13. 4x 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, Pegasystems Inc.

(PEGA) is the cheapest at 17. 3x versus Cadence Design Systems, Inc. at 87. 1x. On forward P/E, Pegasystems Inc. is actually cheaper at 13. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PTC Inc. wins at 0. 44x versus Cadence Design Systems, Inc. 's 3. 20x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

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

(MTSI) delivered a total return of +465. 8%, compared to -36. 8% for Pegasystems Inc. (PEGA). Over 10 years, the gap is even starker: CDNS returned +1420% versus PEGA's +186. 0%. 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), PTC Inc.

(PTC) is the lower-risk stock at 0. 96β versus Synopsys, Inc. 's 1. 79β — meaning SNPS is approximately 87% more volatile than PTC relative to the S&P 500. On balance sheet safety, Pegasystems Inc. (PEGA) carries a lower debt/equity ratio of 10% versus 50% for Synopsys, 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: Pegasystems Inc. grew EPS 287. 3% year-over-year, compared to -170. 2% for MACOM Technology Solutions Holdings, Inc.. Over a 3-year CAGR, SNPS leads at 15. 2% 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.

PTC Inc.

(PTC) is the more profitable company, earning 26. 8% net margin versus -5. 6% for MACOM Technology Solutions Holdings, Inc. — meaning it keeps 26. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PTC leads at 35. 9% versus 13. 0% for SNPS. 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, PTC Inc. (PTC) is the more undervalued stock at a PEG of 0. 44x versus Cadence Design Systems, Inc. 's 3. 20x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Pegasystems Inc. (PEGA) trades at 13. 4x forward P/E versus 69. 2x for MACOM Technology Solutions Holdings, Inc. — 55. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PEGA: 53. 2% to $56. 60.

In this comparison, PEGA (0.

2% yield) pays a dividend. CDNS, SNPS, MTSI, PTC 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 (+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; SNPS is a mid-cap high-growth stock; MTSI is a mid-cap high-growth stock; PEGA is a small-cap high-growth stock; PTC 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.