CGNX vs NVDA

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

5% revenue growth year-over-year, versus 8. 7% for Cognex Corporation (CGNX). NVIDIA Corporation (NVDA) offers the better valuation at 42. 4x trailing P/E (25. 1x forward), making it the more compelling value choice. Analysts rate NVIDIA Corporation (NVDA) a "Buy" — based on 79 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 42.

4x versus Cognex Corporation at 91. 6x. On forward P/E, NVIDIA Corporation is actually cheaper at 25. 1x.

Over the past 5 years, NVIDIA Corporation (NVDA) delivered a total return of +1331%, compared to -19.

2% for Cognex Corporation (CGNX). Over 10 years, the gap is even starker: NVDA returned +234. 3% versus CGNX's +228. 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), Cognex Corporation (CGNX) is the lower-risk stock at 1.

50β versus NVIDIA Corporation's 1. 73β — meaning NVDA is approximately 15% more volatile than CGNX relative to the S&P 500. On balance sheet safety, Cognex Corporation (CGNX) carries a lower debt/equity ratio of 5% versus 7% for NVIDIA Corporation — giving it more financial flexibility in a downturn.

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

5% versus 8. 7% for Cognex Corporation (CGNX). On earnings-per-share growth, the picture is similar: NVIDIA Corporation grew EPS 66. 7% year-over-year, compared to 9. 7% for Cognex Corporation. 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 11. 5% for Cognex Corporation — 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 16. 3% for CGNX. 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.

On forward earnings alone, NVIDIA Corporation (NVDA) trades at 25.

1x forward P/E versus 50. 1x for Cognex Corporation — 25. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVDA: 34. 3% to $278. 83.

In this comparison, CGNX (0.

5% yield) pays a dividend. NVDA does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Cognex Corporation (CGNX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.

5% yield, +228. 2% 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 (CGNX: +228. 2%, NVDA: +234. 3%), 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: CGNX is a mid-cap quality compounder stock; NVDA is a mega-cap high-growth stock. CGNX 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.