Compare MACOM Technology Solutions Holdings, Inc. (MTSI) vs Analog Devices, Inc. (ADI) Stock

Analog Devices, Inc. (ADI) offers the better valuation at 78.0x trailing P/E (31.5x forward), making it the more compelling value choice. Analysts rate MACOM Technology Solutions Holdings, Inc. (MTSI) a "Buy" — based on 23 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 forward P/E, Analog Devices, Inc. is actually cheaper at 31.5x.

Over the past 5 years, MACOM Technology Solutions Holdings, Inc. (MTSI) delivered a total return of +260.3%, compared to +134.6% for Analog Devices, Inc. (ADI). A $10,000 investment in MTSI five years ago would be worth approximately $36K today (assuming dividends reinvested). Over 10 years, the gap is even starker: ADI returned +621.4% versus MTSI's +554.7%. 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), Analog Devices, Inc. (ADI) is the lower-risk stock at 1.55β versus MACOM Technology Solutions Holdings, Inc.'s 1.69β — meaning MTSI is approximately 9% more volatile than ADI relative to the S&P 500. On balance sheet safety, Analog Devices, Inc. (ADI) carries a lower debt/equity ratio of 26% versus 41% for MACOM Technology Solutions Holdings, Inc. — giving it more financial flexibility in a downturn.

Analog Devices, Inc. (ADI) is the more profitable company, earning 20.6% net margin versus -5.6% for MACOM Technology Solutions Holdings, Inc. — meaning it keeps 20.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ADI leads at 26.6% versus 13.4% for MTSI. At the gross margin level — before operating expenses — ADI leads at 61.5%, 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, Analog Devices, Inc. (ADI) trades at 31.5x forward P/E versus 55.5x for MACOM Technology Solutions Holdings, Inc. — 24.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ADI: 5.2% to $374.42.

In this comparison, ADI (1.1% yield) pays a dividend. MTSI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Analog Devices, Inc. (ADI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (1.1% yield, +621.4% 10Y return). MACOM Technology Solutions Holdings, Inc. (MTSI) carries a higher beta of 1.69 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ADI: +621.4%, MTSI: +554.7%), 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. ADI pays a dividend while MTSI 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.