IDCC vs QCOM

For growth investors, QUALCOMM Incorporated (QCOM) is the stronger pick with 13.

7% revenue growth year-over-year, versus -4. 0% for InterDigital, Inc. (IDCC). InterDigital, Inc. (IDCC) offers the better valuation at 23. 6x trailing P/E (38. 7x forward), making it the more compelling value choice. Analysts rate InterDigital, Inc. (IDCC) a "Buy" — based on 16 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, InterDigital, Inc.

(IDCC) is the cheapest at 23. 6x versus QUALCOMM Incorporated at 38. 5x. On forward P/E, QUALCOMM Incorporated is actually cheaper at 17. 9x — 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: InterDigital, Inc. wins at 0. 74x versus QUALCOMM Incorporated's 8. 62x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, InterDigital, Inc.

(IDCC) delivered a total return of +313. 9%, compared to +53. 4% for QUALCOMM Incorporated (QCOM). Over 10 years, the gap is even starker: IDCC returned +432. 3% versus QCOM's +333. 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), InterDigital, Inc.

(IDCC) is the lower-risk stock at 1. 12β versus QUALCOMM Incorporated's 1. 55β — meaning QCOM is approximately 39% more volatile than IDCC relative to the S&P 500. On balance sheet safety, InterDigital, Inc. (IDCC) carries a lower debt/equity ratio of 46% versus 77% for QUALCOMM Incorporated — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), QUALCOMM Incorporated (QCOM) is pulling ahead at 13.

7% versus -4. 0% for InterDigital, Inc. (IDCC). On earnings-per-share growth, the picture is similar: InterDigital, Inc. grew EPS -2. 2% year-over-year, compared to -44. 2% for QUALCOMM Incorporated. Over a 3-year CAGR, IDCC leads at 22. 1% 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.

InterDigital, Inc.

(IDCC) is the more profitable company, earning 48. 8% net margin versus 12. 5% for QUALCOMM Incorporated — meaning it keeps 48. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IDCC leads at 55. 3% versus 27. 9% for QCOM. At the gross margin level — before operating expenses — IDCC leads at 80. 3%, 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, InterDigital, Inc. (IDCC) is the more undervalued stock at a PEG of 0. 74x versus QUALCOMM Incorporated's 8. 62x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, QUALCOMM Incorporated (QCOM) trades at 17. 9x forward P/E versus 38. 7x for InterDigital, Inc. — 20. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for IDCC: 52. 9% to $425. 00.

All stocks in this comparison pay dividends.

QUALCOMM Incorporated (QCOM) offers the highest yield at 1. 8%, versus 0. 6% for InterDigital, Inc. (IDCC).

For long-horizon retirement investors, InterDigital, Inc.

(IDCC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 12), 0. 6% yield, +432. 3% 10Y return). QUALCOMM Incorporated (QCOM) carries a higher beta of 1. 55 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (IDCC: +432. 3%, QCOM: +333. 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.

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.