Analog Devices, Inc. (ADI) vs Texas Instruments Incorporated (TXN)

Analog Devices, Inc. and Texas Instruments Incorporated are both Semiconductors companies. Texas Instruments Incorporated is the larger, with a market value of $249.3B against $186.8B — 1.3× the size. Texas Instruments Incorporated trades at the lower P/E: 41.9× against 46.5×. Analog Devices, Inc. grew revenue faster over the last twelve months: 33.7% against 16.7%. Texas Instruments Incorporated has the higher net margin (31.0% vs 29.8%) and the higher return on invested capital (18.1% vs 7.84%). Both pay a dividend; Texas Instruments Incorporated yields more (3.25% vs 1.93%). Across the 23 metrics below, Texas Instruments Incorporated leads on 12 and Analog Devices, Inc. on 11.

Valuation

Metric ADI TXN Semiconductors median
P/E 46.47 41.88 49.41
P/S 13.78 13.04 8.58
P/B 5.70 14.08 5.49
Price to free cash flow 38.74 47.02 47.02
EV/EBITDA 28.54 27.56 30.78
EV/Sales 14.20 13.40 8.79
Earnings yield 2.15% 2.39% 0.62%
Free cash flow yield 2.58% 2.13% 0.59%

Profitability

Metric ADI TXN Semiconductors median
Gross margin 65.80% 58.33% 52.25%
Operating margin 35.55% 37.29% 4.85%
Net margin 29.79% 30.97% 4.77%
Free cash flow margin 35.57% 27.72% 8.65%
Return on equity 12.23% 35.01% 3.11%
Return on assets 8.56% 17.01% 1.91%
Return on invested capital 7.84% 18.09% 2.46%

Growth

Metric ADI TXN Semiconductors median
Revenue growth (TTM) 33.65% 16.66% 16.66%
EPS growth (last fiscal year) 39.02% 4.81% —
Revenue growth, 5-year CAGR 14.49% 4.10% 5.60%
Net income growth, 5-year CAGR 13.18% (2.23%) 0.00%

Health

Metric ADI TXN Semiconductors median
Debt to equity 0.24 0.78 0.05
Current ratio 1.25 4.86 3.35
Net debt to EBITDA 0.91 1.14 0.58

Dividend

Metric ADI TXN Semiconductors median
Dividend yield 1.93% 3.25% 1.93%
Payout ratio 0.44 0.58 0.00

Size

Metric ADI TXN Semiconductors median
Market cap 186.76b 249.33b 5.67b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack