QUALCOMM Incorporated (QCOM) vs Texas Instruments Incorporated (TXN)

QUALCOMM Incorporated and Texas Instruments Incorporated are both Semiconductors companies. Texas Instruments Incorporated is the larger, with a market value of $249.3B against $205.7B — 1.2× the size. QUALCOMM Incorporated trades at the lower P/E: 23.1× against 41.9×. Texas Instruments Incorporated grew revenue faster over the last twelve months: 16.7% against 1.87%. Texas Instruments Incorporated has the higher net margin (31.0% vs 21.0%) and the lower return on invested capital (18.1% vs 18.5%). Both pay a dividend; Texas Instruments Incorporated yields more (3.25% vs 2.25%). Across the 23 metrics below, QUALCOMM Incorporated leads on 13 and Texas Instruments Incorporated on 10.

Valuation

Metric QCOM TXN Semiconductors median
P/E 23.14 41.88 49.41
P/S 4.84 13.04 8.58
P/B 7.72 14.08 5.49
Price to free cash flow 20.47 47.02 47.02
EV/EBITDA 18.67 27.56 30.78
EV/Sales 5.00 13.40 8.79
Earnings yield 4.32% 2.39% 0.62%
Free cash flow yield 4.89% 2.13% 0.59%

Profitability

Metric QCOM TXN Semiconductors median
Gross margin 54.23% 58.33% 52.25%
Operating margin 23.19% 37.29% 4.85%
Net margin 21.01% 30.97% 4.77%
Free cash flow margin 23.67% 27.72% 8.65%
Return on equity 33.75% 35.01% 3.11%
Return on assets 16.50% 17.01% 1.91%
Return on invested capital 18.45% 18.09% 2.46%

Growth

Metric QCOM TXN Semiconductors median
Revenue growth (TTM) 1.87% 16.66% 16.66%
EPS growth (last fiscal year) (44.15%) 4.81% —
Revenue growth, 5-year CAGR 13.48% 4.10% 5.60%
Net income growth, 5-year CAGR 1.29% (2.23%) 0.00%

Health

Metric QCOM TXN Semiconductors median
Debt to equity 0.55 0.78 0.05
Current ratio 2.02 4.86 3.35
Net debt to EBITDA 0.17 1.14 0.58

Dividend

Metric QCOM TXN Semiconductors median
Dividend yield 2.25% 3.25% 1.93%
Payout ratio 0.40 0.58 0.00

Size

Metric QCOM TXN Semiconductors median
Market cap 205.71b 249.33b 5.67b

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