ADEA vs IDCC: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: ADEA is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADEA and IDCC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADEA and IDCC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Adeia Inc, the licensing business spun out of the former Xperi (with roots in Rovi, TiVo, and DTS heritage IP), monetizes one of the larger patent portfolios in media and semiconductors. It licenses technology across Pay-TV, streaming and social media, consumer electronics, and increasingly semiconductor packaging and interconnect, signing multi-year agreements with names such as AMD and Microsoft. The model is capital-light: a fixed research and licensing cost base generates recurring royalty revenue plus periodic up-front, non-recurring fees, which is why adjusted EBITDA margins run around 60 percent and the operating margin on a reported basis is about 32 percent.

Full ADEA guide

InterDigital is a wireless and video technology research and patent licensing company. The company develops fundamental technology used in cellular standards (5G, 6G, prior generations), video coding standards (HEVC, VVC), and other communications and media technologies. The company contributes patents to standard-setting organizations and earns recurring licensing revenue from device manufacturers (smartphone OEMs, consumer electronics manufacturers) that implement those standards.

Full IDCC guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ADEA drivers: Semiconductor licensing expansion; Recurring royalty base and cash generation.
• IDCC drivers: 5G licensing scale-up; Video standards licensing expansion.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Revenue is lumpy because non-recurring up-front license fees can swing quarterly results, making any single period hard to extrapolate; analysts expect full-year 2026 revenue of about $416 million, below 2025's $443 million, largely because the fourth quarter of 2025 was unusually large. For IDCC, licensing disputes can suspend royalty receipts during periods of litigation.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ADEA if you believe its drivers more; IDCC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ADEA and IDCC guides.

ADEA. At $21.12, Adeia trades around 13x forward earnings and about 12x trailing free cash flow, cheaper than earlier in the year after the stock fell from its $34.34 high. Earlier in 2026 management guided full-year revenue of roughly $395 million to $435 million, and analysts now expect about $416 million. The third-quarter report on November 2, 2026 (consensus EPS about $0.30 on $98.9 million of revenue) will be the first under the new CEO.

IDCC. InterDigital's valuation reflects the high-margin licensing business model and a re-rating in 2026: the trailing P/E is near 38 and the forward multiple about 29 at the October 16 price, against roughly 15x in early 2026. Earnings stay lumpy because licensing settlements land in single quarters, as the $4.62 second-quarter EPS against a $1.52 estimate showed, while multi-year contracted licensing provides smoother underlying economics. Price-to-free-cash-flow, near 14 on trailing figures, may be more useful than trailing P/E.

Headline figures (approximate, October 2026): ADEA shows revenue (ttm) ~$471M, q2 2026 revenue ~$96.1M (up ~12% YoY), net income (ttm) ~$123M (EPS ~$1.09), operating margin ~32%; IDCC shows revenue (ttm) ~$789 million, 2026 revenue guidance ~$775-845 million (raised from ~$675-775 million), annualized recurring revenue ~$626 million (Q2 2026, +13% y/y), operating margin ~54% (licensing model).

ADEA and IDCC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADEA and IDCC exposure against your real portfolio. It is not an investment adviser.