Head to Head Contrast: Texas Instruments (NASDAQ:TXN) vs. Intel (NASDAQ:INTC)

Texas Instruments (NASDAQ:TXN) and Intel (NASDAQ:INTC) are both large-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Volatility and Risk

Texas Instruments has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Intel has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Institutional & Insider Ownership

85.0% of Texas Instruments shares are held by institutional investors. Comparatively, 64.5% of Intel shares are held by institutional investors. 0.6% of Texas Instruments shares are held by insiders. Comparatively, 0.0% of Intel shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Texas Instruments and Intel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	30.36%	28.75%	13.96%
Intel	-36.19%	-3.15%	-1.75%

Analyst Ratings

This is a summary of current ratings and target prices for Texas Instruments and Intel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	4	16	9	2	2.29
Intel	6	24	1	0	1.84

Texas Instruments currently has a consensus price target of $191.49, indicating a potential downside of 7.53%. Intel has a consensus price target of $21.57, indicating a potential downside of 4.93%. Given Intel’s higher possible upside, analysts clearly believe Intel is more favorable than Texas Instruments.

Earnings & Valuation

This table compares Texas Instruments and Intel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$15.64 billion	12.03	$4.80 billion	$5.27	39.29
Intel	$53.10 billion	1.86	-$18.76 billion	($4.48)	-5.06

Texas Instruments has higher earnings, but lower revenue than Intel. Intel is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.

Summary

Texas Instruments beats Intel on 12 of the 15 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

About Intel

Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. It operates through Client Computing Group, Data Center and AI, Network and Edge, Mobileye, and Intel Foundry Services segments. The company's products portfolio comprises central processing units and chipsets, system-on-chips (SoCs), and multichip packages; mobile and desktop processors; hardware products comprising graphics processing units (GPUs), domain-specific accelerators, and field programmable gate arrays (FPGAs); and memory and storage, connectivity and networking, and other semiconductor products. It also offers silicon devices and software products; and optimization solutions for workloads, such as AI, cryptography, security, storage, networking, and leverages various features supporting diverse compute environments. In addition, the company develops and deploys advanced driver assistance systems (ADAS), and autonomous driving technologies and solutions; and provides advanced process technologies backed by an ecosystem of IP, EDA, and design services, as well as systems of chips, including advanced packaging technologies, software and accelerate bring-up, and integration of chips and driving standards. Further, it delivers and deploys intelligent edge platforms that allow developers to achieve agility and drive automation using AI for efficient operations with data integrity, as well as provides hardware and software platforms, tools, and ecosystem partnerships for digital transformation from the cloud to edge. The company serves original equipment manufacturers, original design manufacturers, cloud service providers, and other manufacturers and service providers. It has a strategic agreement with Synopsys, Inc. to develop EDA and IP solutions; and ARM that enables chip designers to build optimized compute SoCs on the Intel 18A process. Intel Corporation was incorporated in 1968 and is headquartered in Santa Clara, California.