DIOD vs AVGO vs ADI vs TXN

For growth investors, Broadcom Inc.

(AVGO) is the stronger pick with 23. 9% revenue growth year-over-year, versus 13. 0% for Diodes Incorporated (DIOD). Texas Instruments Incorporated (TXN) offers the better valuation at 52. 3x trailing P/E (37. 8x forward), making it the more compelling value choice. Analysts rate Diodes Incorporated (DIOD) a "Buy" — based on 13 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, Texas Instruments Incorporated (TXN) is the cheapest at 52.

3x versus Analog Devices, Inc. at 89. 6x. On forward P/E, Analog Devices, Inc. is actually cheaper at 35. 8x — notably different from the trailing picture, reflecting expected earnings growth. 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 Analog Devices, Inc. 's 5. 25x — 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 +51. 0% for Diodes Incorporated (DIOD). Over 10 years, the gap is even starker: AVGO returned +29. 0% versus TXN's +471. 6%. 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), Texas Instruments Incorporated (TXN) is the lower-risk stock at 1.

11β versus Diodes Incorporated's 2. 11β — meaning DIOD is approximately 91% more volatile than TXN relative to the S&P 500. On balance sheet safety, Diodes Incorporated (DIOD) carries a lower debt/equity ratio of 5% versus 95% for Texas Instruments Incorporated — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Broadcom Inc.

(AVGO) is pulling ahead at 23. 9% versus 13. 0% for Diodes Incorporated (DIOD). On earnings-per-share growth, the picture is similar: Broadcom Inc. grew EPS 287. 8% year-over-year, compared to 4. 8% for Texas Instruments Incorporated. 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 4. 5% for Diodes Incorporated — 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 2. 4% for DIOD. At the gross margin level — before operating expenses — AVGO leads at 67. 8%, 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 Analog Devices, Inc. 's 5. 25x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Analog Devices, Inc. (ADI) trades at 35. 8x forward P/E versus 48. 5x for Diodes Incorporated — 12. 7x 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, TXN (1.

9% yield), ADI (0. 9% yield), AVGO (0. 6% yield) pay a dividend. DIOD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Texas Instruments Incorporated (TXN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

11), 1. 9% yield, +471. 6% 10Y return). Diodes Incorporated (DIOD) carries a higher beta of 2. 11 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TXN: +471. 6%, DIOD: +490. 7%), 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: DIOD is a small-cap quality compounder stock; AVGO is a mega-cap high-growth stock; ADI is a mid-cap high-growth stock; TXN is a large-cap quality compounder stock. AVGO, ADI, TXN pay a dividend while DIOD 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.