ALAB vs. TXN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALAB and TXN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
TXN’s market capitalization of 196.25 billion USD is significantly greater than ALAB’s 14.97 billion USD, highlighting its more substantial market valuation.
With betas of 1.40 for ALAB and 0.99 for TXN, both stocks show similar sensitivity to overall market movements.
| Symbol | ALAB | TXN |
|---|---|---|
| Company Name | Astera Labs, Inc. Common Stock | Texas Instruments Incorporated |
| Country | US | US |
| Sector | Technology | Technology |
| Industry | Semiconductors | Semiconductors |
| CEO | Jitendra Mohan | Haviv Ilan |
| Price | 90.8 USD | 216.02 USD |
| Market Cap | 14.97 billion USD | 196.25 billion USD |
| Beta | 1.40 | 0.99 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | March 20, 2024 | June 1, 1972 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALAB and TXN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALAB
4.43%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
ALAB’s Return on Equity of 4.43% is on par with the norm for the Semiconductors industry, indicating its profitability relative to shareholder equity is typical for the sector.
TXN
28.75%
Semiconductors Industry
- Max
- 41.84%
- Q3
- 15.81%
- Median
- 6.31%
- Q1
- -5.54%
- Min
- -30.12%
In the upper quartile for the Semiconductors industry, TXN’s Return on Equity of 28.75% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
ALAB
-4.25%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
ALAB has a negative Return on Invested Capital of -4.25%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
TXN
15.78%
Semiconductors Industry
- Max
- 30.91%
- Q3
- 11.34%
- Median
- 4.08%
- Q1
- -2.17%
- Min
- -19.59%
In the upper quartile for the Semiconductors industry, TXN’s Return on Invested Capital of 15.78% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
ALAB
8.44%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
ALAB’s Net Profit Margin of 8.44% is aligned with the median group of its peers in the Semiconductors industry. This indicates its ability to convert revenue into profit is typical for the sector.
TXN
30.36%
Semiconductors Industry
- Max
- 51.69%
- Q3
- 19.67%
- Median
- 8.56%
- Q1
- -5.44%
- Min
- -38.60%
A Net Profit Margin of 30.36% places TXN in the upper quartile for the Semiconductors industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ALAB
-4.45%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
ALAB has a negative Operating Profit Margin of -4.45%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
TXN
34.29%
Semiconductors Industry
- Max
- 58.03%
- Q3
- 22.12%
- Median
- 8.40%
- Q1
- -3.73%
- Min
- -36.14%
An Operating Profit Margin of 34.29% places TXN in the upper quartile for the Semiconductors industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ALAB | TXN |
|---|---|---|
| Return on Equity (TTM) | 4.43% | 28.75% |
| Return on Assets (TTM) | 3.69% | 14.44% |
| Return on Invested Capital (TTM) | -4.25% | 15.78% |
| Net Profit Margin (TTM) | 8.44% | 30.36% |
| Operating Profit Margin (TTM) | -4.45% | 34.29% |
| Gross Profit Margin (TTM) | 75.76% | 58.02% |
Financial Strength
Current Ratio
ALAB
13.92
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
ALAB’s Current Ratio of 13.92 is exceptionally high, placing it well outside the typical range for the Semiconductors industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
TXN
5.26
Semiconductors Industry
- Max
- 9.10
- Q3
- 5.23
- Median
- 3.09
- Q1
- 2.49
- Min
- 1.02
TXN’s Current Ratio of 5.26 is in the upper quartile for the Semiconductors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio
ALAB
--
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
Debt-to-Equity Ratio data for ALAB is currently unavailable.
TXN
0.78
Semiconductors Industry
- Max
- 0.97
- Q3
- 0.46
- Median
- 0.21
- Q1
- 0.05
- Min
- 0.00
TXN’s leverage is in the upper quartile of the Semiconductors industry, with a Debt-to-Equity Ratio of 0.78. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio
ALAB
--
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
Interest Coverage Ratio data for ALAB is currently unavailable.
TXN
10.58
Semiconductors Industry
- Max
- 36.25
- Q3
- 29.12
- Median
- 7.01
- Q1
- -1.22
- Min
- -18.18
TXN’s Interest Coverage Ratio of 10.58 is positioned comfortably within the norm for the Semiconductors industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ALAB | TXN |
|---|---|---|
| Current Ratio (TTM) | 13.92 | 5.26 |
| Quick Ratio (TTM) | 13.26 | 3.37 |
| Debt-to-Equity Ratio (TTM) | -- | 0.78 |
| Debt-to-Asset Ratio (TTM) | -- | 0.38 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.76 | 1.32 |
| Interest Coverage Ratio (TTM) | -- | 10.58 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALAB and TXN. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALAB
0.00%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALAB currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
TXN
2.49%
Semiconductors Industry
- Max
- 6.48%
- Q3
- 0.93%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.49%, TXN offers a more attractive income stream than most of its peers in the Semiconductors industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ALAB
0.00%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ALAB has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
TXN
99.53%
Semiconductors Industry
- Max
- 204.29%
- Q3
- 31.85%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
TXN’s Dividend Payout Ratio of 99.53% is in the upper quartile for the Semiconductors industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ALAB | TXN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.49% |
| Dividend Payout Ratio (TTM) | 0.00% | 99.53% |
Valuation
Price-to-Earnings Ratio
ALAB
357.98
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
At 357.98, ALAB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Semiconductors industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
TXN
40.34
Semiconductors Industry
- Max
- 86.15
- Q3
- 47.38
- Median
- 27.87
- Q1
- 18.89
- Min
- 4.73
TXN’s P/E Ratio of 40.34 is within the middle range for the Semiconductors industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ALAB
10.80
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
TXN
2.00
Semiconductors Industry
- Max
- 4.73
- Q3
- 2.80
- Median
- 1.11
- Q1
- 0.68
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Semiconductors industry.
Price-to-Sales Ratio
ALAB
30.53
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
With a P/S Ratio of 30.53, ALAB trades at a valuation that eclipses even the highest in the Semiconductors industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
TXN
12.23
Semiconductors Industry
- Max
- 21.96
- Q3
- 10.21
- Median
- 4.45
- Q1
- 2.32
- Min
- 0.48
TXN’s P/S Ratio of 12.23 is in the upper echelon for the Semiconductors industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ALAB
14.23
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
At 14.23, ALAB’s P/B Ratio is at an extreme premium to the Semiconductors industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
TXN
11.98
Semiconductors Industry
- Max
- 13.12
- Q3
- 6.49
- Median
- 3.31
- Q1
- 1.74
- Min
- 0.23
TXN’s P/B Ratio of 11.98 is in the upper tier for the Semiconductors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ALAB | TXN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 357.98 | 40.34 |
| Forward PEG Ratio (TTM) | 10.80 | 2.00 |
| Price-to-Sales Ratio (P/S, TTM) | 30.53 | 12.23 |
| Price-to-Book Ratio (P/B, TTM) | 14.23 | 11.98 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 138.44 | 134.88 |
| EV-to-EBITDA (TTM) | -820.32 | 27.08 |
| EV-to-Sales (TTM) | 30.35 | 12.86 |