ROK vs PTC vs HON vs CDNS

For growth investors, PTC Inc.

(PTC) is the stronger pick with 19. 2% revenue growth year-over-year, versus 1. 0% for Rockwell Automation, Inc. (ROK). PTC Inc. (PTC) offers the better valuation at 24. 3x trailing P/E (19. 2x forward), making it the more compelling value choice. Analysts rate PTC Inc. (PTC) a "Buy" — based on 33 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, PTC Inc.

(PTC) is the cheapest at 24. 3x versus Cadence Design Systems, Inc. at 87. 9x. On forward P/E, PTC Inc. is actually cheaper at 19. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: PTC Inc. wins at 0. 48x versus Honeywell International Inc. 's 11. 18x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Cadence Design Systems, Inc.

(CDNS) delivered a total return of +176. 6%, compared to +3. 3% for Honeywell International Inc. (HON). Over 10 years, the gap is even starker: CDNS returned +1412% versus HON's +135. 1%. 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), Honeywell International Inc.

(HON) is the lower-risk stock at 0. 74β versus Cadence Design Systems, Inc. 's 1. 48β — meaning CDNS is approximately 100% more volatile than HON relative to the S&P 500. On balance sheet safety, PTC Inc. (PTC) carries a lower debt/equity ratio of 36% versus 2% for Honeywell International Inc. — giving it more financial flexibility in a downturn.

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

(PTC) is pulling ahead at 19. 2% versus 1. 0% for Rockwell Automation, Inc. (ROK). On earnings-per-share growth, the picture is similar: PTC Inc. grew EPS 94. 9% year-over-year, compared to -15. 5% for Honeywell International Inc.. Over a 3-year CAGR, CDNS leads at 14. 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.

PTC Inc.

(PTC) is the more profitable company, earning 26. 8% net margin versus 10. 4% for Rockwell Automation, Inc. — meaning it keeps 26. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PTC leads at 35. 9% versus 17. 1% for ROK. At the gross margin level — before operating expenses — CDNS leads at 86. 4%, 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, PTC Inc. (PTC) is the more undervalued stock at a PEG of 0. 48x versus Honeywell International Inc. 's 11. 18x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, PTC Inc. (PTC) trades at 19. 2x forward P/E versus 45. 0x for Cadence Design Systems, Inc. — 25. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PTC: 31. 9% to $194. 80.

In this comparison, HON (2.

1% yield), ROK (1. 2% yield) pay a dividend. PTC, CDNS do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Honeywell International Inc.

(HON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 74), 2. 1% yield, +135. 1% 10Y return). Both have compounded well over 10 years (HON: +135. 1%, PTC: +315. 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 (ROK (Industrials) and PTC (Technology) and HON (Industrials) and CDNS (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: ROK is a mid-cap quality compounder stock; PTC is a mid-cap high-growth stock; HON is a mid-cap quality compounder stock; CDNS is a mid-cap quality compounder stock. ROK, HON pay a dividend while PTC, CDNS do 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.