ESI vs AVGO vs TXN vs AMAT

For growth investors, Broadcom Inc.

(AVGO) is the stronger pick with 23. 9% revenue growth year-over-year, versus 3. 8% for Element Solutions Inc (ESI). Applied Materials, Inc. (AMAT) offers the better valuation at 47. 4x trailing P/E (37. 1x forward), making it the more compelling value choice. Analysts rate Element Solutions Inc (ESI) a "Buy" — based on 35 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, Applied Materials, Inc.

(AMAT) is the cheapest at 47. 4x versus Broadcom Inc. at 86. 5x. On forward P/E, Element Solutions Inc is actually cheaper at 24. 0x — 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 Applied Materials, Inc. 's 2. 16x — 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 +65. 5% for Texas Instruments Incorporated (TXN). Over 10 years, the gap is even starker: AVGO returned +29. 0% versus ESI's +415. 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), Texas Instruments Incorporated (TXN) is the lower-risk stock at 1.

11β versus Applied Materials, Inc. 's 2. 14β — meaning AMAT is approximately 93% more volatile than TXN relative to the S&P 500. On balance sheet safety, Applied Materials, Inc. (AMAT) carries a lower debt/equity ratio of 32% 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 3. 8% for Element Solutions Inc (ESI). On earnings-per-share growth, the picture is similar: Broadcom Inc. grew EPS 287. 8% year-over-year, compared to -21. 8% for Element Solutions 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 7. 5% for Element Solutions 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. 4% for ESI. 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 Applied Materials, Inc. 's 2. 16x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Element Solutions Inc (ESI) trades at 24. 0x forward P/E versus 37. 8x for Texas Instruments Incorporated — 13. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AVGO: 7. 6% to $443. 72.

All stocks in this comparison pay dividends.

Texas Instruments Incorporated (TXN) offers the highest yield at 1. 9%, versus 0. 4% for Applied Materials, Inc. (AMAT).

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). Applied Materials, Inc. (AMAT) carries a higher beta of 2. 14 — 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%, AMAT: +20. 1%), 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.

These companies operate in different sectors (ESI (Basic Materials) and AVGO (Technology) and TXN (Technology) and AMAT (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ESI is a mid-cap quality compounder stock; AVGO is a mega-cap high-growth stock; TXN is a large-cap quality compounder stock; AMAT is a large-cap quality compounder stock. ESI, AVGO, TXN pay a dividend while AMAT 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.