AXON vs IDCC: How Axon Enterprise and InterDigital Compare (2026)
Last updated August 2026
Short answer
AXON is the larger of the two ($42.54B market cap): the incumbent the market prices for continued execution (50.18x forward earnings, beta 1.38). IDCC is the smaller challenger ($7.87B), cheaper on forward earnings (26.31x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
AXON vs IDCC: the tie-breaker metrics
Same yardstick, side by side (as of August 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.
| Metric | AXON | IDCC | What it tells you |
|---|---|---|---|
| Market cap | $42.54B | $7.87B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 50.18 | 26.31 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 212.81 | 35.86 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 1.38 | 1.41 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 35% of range | 34% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 12.03 | 6.54 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: IDCC 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.
Before you buy: how AXON and IDCC affect your concentration
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. AXON 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 AXON 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.
What does Axon Enterprise (AXON) do?
Axon Enterprise (formerly TASER International) is the dominant supplier of body-worn cameras, in-car video, and conducted electrical weapons (TASERs) to law enforcement worldwide. The company also operates Axon Evidence (Evidence.com), the cloud-based digital evidence management platform that integrates video, audio, and case records, and Axon Records (records management system). Each Axon hardware device generates data that gets stored, processed, and analyzed in Axon's cloud platform, creating a recurring SaaS revenue stream.
What does InterDigital (IDCC) do?
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.
AXON vs IDCC: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- AXON drivers: AI-powered features; International expansion.
- IDCC drivers: 5G licensing scale-up; Video standards licensing expansion.
Which fits which kind of investor
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: Public sector budget cycles affect short-term revenue. For IDCC, licensing disputes can suspend royalty receipts during periods of litigation.
AXON or IDCC: which should you pick?
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 AXON 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 AXON and IDCC guides.
AXON vs IDCC: the full fundamentals
AXON. Axon trades at one of the highest valuations in public sector software, reflecting the dominant position in law enforcement video and TASERs, the high-margin SaaS conversion, and the AI feature roadmap. The premium embeds high expectations and is sensitive to budget cycles.
IDCC. InterDigital's valuation reflects the high-margin licensing business model. P/E and earnings can be volatile due to lumpy licensing settlements; multi-year contracted licensing provides smoother underlying economics. Price-to-cash-flow may be more useful than trailing P/E.
Headline figures (approximate, early 2026): AXON shows revenue (ttm) ~$2.5 billion, operating margin ~25% (non-GAAP), net income (ttm) ~$400 million (GAAP), eps (ttm) ~$5.20; IDCC shows revenue (ttm) ~$700 million, operating margin ~55% (licensing model), net income (ttm) ~$350 million, eps (ttm) ~$13.00.
The bottom line: AXON vs IDCC
AXON 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 AXON and IDCC exposure against your real portfolio. It is not an investment adviser.
Wondering how AXON or IDCC fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Axon Enterprise with AI
Connect the broker you already use and ask Walnut's AI how AXON fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between AXON and IDCC?
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Axon Enterprise (formerly TASER International) is the dominant supplier of body-worn cameras, in-car video, and conducted electrical weapons (TASERs) to law enforcement worldwide. InterDigital is a wireless and video technology research and patent licensing company. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is AXON or IDCC the better stock?
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Neither is universally better. AXON is the larger incumbent; IDCC is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, AXON or IDCC?
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On forward P/E (as of August 2026), AXON trades at 50.18x and IDCC at 26.31x, so IDCC is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both AXON and IDCC?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of AXON vs IDCC?
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AXON: Public sector budget cycles affect short-term revenue. Regulatory debates around law enforcement technology (facial recognition, predictive policing) constrain some product features. Competition from Motorola Solutions in body-worn cameras has intensified. IDCC: Licensing disputes can suspend royalty receipts during periods of litigation. Court decisions on FRAND (fair, reasonable, and non-discriminatory) terms affect royalty rates. Concentration of licensing revenue among a small number of major handset OEMs creates revenue concentration risk.
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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell AXON or IDCC; figures are approximate and dated (as of August 2026). Verify current data before investing.