ARM vs. TXN: Arm Holdings vs. Texas Instruments Stock Comparison

Company Profile

Arm Holdings (ARM) and Texas Instruments (TXN) are both classified in the Semiconductors sub-industry within the broader Semiconductors & Semiconductor Equipment industry, placing them in the closest GICS peer bucket.

Texas Instruments (TXN) has more than two decades of public-market history since June 1, 1972, whereas Arm Holdings (ARM) listed on September 14, 2023 and has a much shorter record to draw on.

Texas Instruments (TXN) trades as ordinary local shares, while Arm Holdings (ARM) trades as an ADR — compare with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Texas Instruments (TXN) at 39.72% sits in the top ROE quartile, while Arm Holdings (ARM) at 11.35% is closer to the peer norm — stronger capital efficiency for TXN.

Texas Instruments (TXN) at 34.25% retains a top-quartile share of revenue as profit, ahead of Arm Holdings (ARM) at 17.13%, which keeps about the industry-typical share.

Texas Instruments (TXN) at 47.55% operates in the top operating margin quartile, ahead of Arm Holdings (ARM) at 13.93%, which runs around its industry’s norm.

Profitability Metrics

Growth

Both Arm Holdings (ARM) at 22.79% and Texas Instruments (TXN) at 13.05% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Both Arm Holdings (ARM) at 13.33% and Texas Instruments (TXN) at 4.81% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Growth Metrics

Financial Strength

Texas Instruments (TXN) at 5.60 keeps current ratio within its industry’s typical mid-range, while Arm Holdings (ARM) at 6.35 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

Arm Holdings (ARM) at 0.06 carries an industry-typical debt-to-equity mix, while Texas Instruments (TXN) at 0.71 uses more debt funding than most peers.

Financial Strength Metrics

Dividends

Arm Holdings (ARM) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Texas Instruments (TXN) reports a yield of 2.04%, ranking against industry peers normally.

Arm Holdings (ARM) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Texas Instruments (TXN) reports a payout of 73.67%, ranking against industry peers normally.

Dividend Metrics

Valuation

Texas Instruments (TXN) at 35.97 is near its industry’s usual P/E ratio, while Arm Holdings (ARM) at 200.71 sits above its peer range — an unusually expensive price for ARM’s trailing earnings.

Texas Instruments (TXN) at 12.21 prices around its industry’s typical P/S ratio, while Arm Holdings (ARM) at 34.20 clears its benchmark range — ARM looks notably rich on sales.

Both look rich against book: Texas Instruments (TXN) at 13.21 sits in the upper P/B ratio quartile, and Arm Holdings (ARM) at 20.56 prices even higher, above its industry range.

Valuation Metrics