HOOD vs. TXN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HOOD and TXN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | HOOD | TXN |
|---|---|---|
| Company Name | Robinhood Markets, Inc. | Texas Instruments Incorporated |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Capital Markets | Semiconductors & Semiconductor Equipment |
| Market Capitalization | 107.69 billion USD | 167.78 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | July 29, 2021 | June 1, 1972 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of HOOD 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.
Historical Performance at a Glance
| Symbol | HOOD | TXN |
|---|---|---|
| 5-Day Price Return | 12.92% | -0.38% |
| 13-Week Price Return | 52.92% | -11.51% |
| 26-Week Price Return | 220.10% | -0.41% |
| 52-Week Price Return | 499.33% | -12.15% |
| Month-to-Date Return | 37.63% | -9.26% |
| Year-to-Date Return | 284.27% | -2.02% |
| 10-Day Avg. Volume | 53.37M | 6.94M |
| 3-Month Avg. Volume | 44.64M | 6.76M |
| 3-Month Volatility | 62.75% | 35.17% |
| Beta | 2.43 | 1.03 |
Profitability
Return on Equity (TTM)
HOOD
22.92%
Capital Markets Industry
- Max
- 38.97%
- Q3
- 22.24%
- Median
- 13.52%
- Q1
- 8.61%
- Min
- -4.25%
In the upper quartile for the Capital Markets industry, HOOD’s Return on Equity of 22.92% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
TXN
30.10%
Semiconductors & Semiconductor Equipment Industry
- Max
- 47.13%
- Q3
- 23.50%
- Median
- 9.94%
- Q1
- 0.86%
- Min
- -20.69%
In the upper quartile for the Semiconductors & Semiconductor Equipment industry, TXN’s Return on Equity of 30.10% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
HOOD
50.13%
Capital Markets Industry
- Max
- 69.91%
- Q3
- 37.24%
- Median
- 24.30%
- Q1
- 13.06%
- Min
- -15.18%
A Net Profit Margin of 50.13% places HOOD in the upper quartile for the Capital Markets industry, signifying strong profitability and more effective cost management than most of its peers.
TXN
30.23%
Semiconductors & Semiconductor Equipment Industry
- Max
- 52.41%
- Q3
- 23.88%
- Median
- 10.17%
- Q1
- 1.21%
- Min
- -32.15%
A Net Profit Margin of 30.23% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
HOOD
42.50%
Capital Markets Industry
- Max
- 84.86%
- Q3
- 47.16%
- Median
- 32.23%
- Q1
- 18.65%
- Min
- -21.87%
HOOD’s Operating Profit Margin of 42.50% is around the midpoint for the Capital Markets industry, indicating that its efficiency in managing core business operations is typical for the sector.
TXN
34.89%
Semiconductors & Semiconductor Equipment Industry
- Max
- 58.09%
- Q3
- 27.54%
- Median
- 11.18%
- Q1
- 3.31%
- Min
- -28.36%
An Operating Profit Margin of 34.89% places TXN in the upper quartile for the Semiconductors & Semiconductor Equipment 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 | HOOD | TXN |
|---|---|---|
| Return on Equity (TTM) | 22.92% | 30.10% |
| Return on Assets (TTM) | 5.41% | 14.45% |
| Net Profit Margin (TTM) | 50.13% | 30.23% |
| Operating Profit Margin (TTM) | 42.50% | 34.89% |
| Gross Profit Margin (TTM) | 94.76% | 58.03% |
Financial Strength
Current Ratio (MRQ)
HOOD
1.25
Capital Markets Industry
- Max
- 3.37
- Q3
- 1.81
- Median
- 1.01
- Q1
- 0.56
- Min
- 0.04
For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
TXN
5.81
Semiconductors & Semiconductor Equipment Industry
- Max
- 6.58
- Q3
- 4.24
- Median
- 2.73
- Q1
- 2.13
- Min
- 1.02
TXN’s Current Ratio of 5.81 is in the upper quartile for the Semiconductors & Semiconductor Equipment 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 (MRQ)
HOOD
1.57
Capital Markets Industry
- Max
- 6.52
- Q3
- 2.79
- Median
- 0.96
- Q1
- 0.28
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.
TXN
0.86
Semiconductors & Semiconductor Equipment Industry
- Max
- 1.09
- Q3
- 0.48
- Median
- 0.25
- Q1
- 0.01
- Min
- 0.00
TXN’s leverage is in the upper quartile of the Semiconductors & Semiconductor Equipment industry, with a Debt-to-Equity Ratio of 0.86. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
HOOD
--
Capital Markets Industry
- Max
- 107.59
- Q3
- 48.41
- Median
- 10.85
- Q1
- 4.56
- Min
- -36.26
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.
TXN
11.73
Semiconductors & Semiconductor Equipment Industry
- Max
- 174.00
- Q3
- 74.71
- Median
- 26.06
- Q1
- 6.43
- Min
- -7.80
TXN’s Interest Coverage Ratio of 11.73 is positioned comfortably within the norm for the Semiconductors & Semiconductor Equipment industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | HOOD | TXN |
|---|---|---|
| Current Ratio (MRQ) | 1.25 | 5.81 |
| Quick Ratio (MRQ) | 1.24 | 2.93 |
| Debt-to-Equity Ratio (MRQ) | 1.57 | 0.86 |
| Interest Coverage Ratio (TTM) | -- | 11.73 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
HOOD
0.00%
Capital Markets Industry
- Max
- 9.02%
- Q3
- 4.54%
- Median
- 2.55%
- Q1
- 1.27%
- Min
- 0.00%
HOOD 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
2.94%
Semiconductors & Semiconductor Equipment Industry
- Max
- 3.72%
- Q3
- 1.51%
- Median
- 0.69%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.94%, TXN offers a more attractive income stream than most of its peers in the Semiconductors & Semiconductor Equipment industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
HOOD
0.00%
Capital Markets Industry
- Max
- 199.38%
- Q3
- 99.28%
- Median
- 60.67%
- Q1
- 32.00%
- Min
- 0.00%
HOOD 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
97.20%
Semiconductors & Semiconductor Equipment Industry
- Max
- 205.27%
- Q3
- 88.01%
- Median
- 27.13%
- Q1
- 0.00%
- Min
- 0.00%
TXN’s Dividend Payout Ratio of 97.20% is in the upper quartile for the Semiconductors & Semiconductor Equipment 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 | HOOD | TXN |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.94% |
| Dividend Payout Ratio (TTM) | 0.00% | 97.20% |
Valuation
Price-to-Earnings Ratio (TTM)
HOOD
69.16
Capital Markets Industry
- Max
- 51.69
- Q3
- 29.42
- Median
- 17.58
- Q1
- 12.55
- Min
- 5.59
At 69.16, HOOD’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Capital Markets 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
33.10
Semiconductors & Semiconductor Equipment Industry
- Max
- 106.30
- Q3
- 61.93
- Median
- 38.96
- Q1
- 23.71
- Min
- 13.06
TXN’s P/E Ratio of 33.10 is within the middle range for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
HOOD
34.67
Capital Markets Industry
- Max
- 14.65
- Q3
- 7.29
- Median
- 4.53
- Q1
- 2.26
- Min
- 0.04
With a P/S Ratio of 34.67, HOOD trades at a valuation that eclipses even the highest in the Capital Markets industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
TXN
10.01
Semiconductors & Semiconductor Equipment Industry
- Max
- 19.99
- Q3
- 10.21
- Median
- 5.23
- Q1
- 2.88
- Min
- 1.13
TXN’s P/S Ratio of 10.01 aligns with the market consensus for the Semiconductors & Semiconductor Equipment industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
HOOD
10.24
Capital Markets Industry
- Max
- 10.83
- Q3
- 5.12
- Median
- 2.66
- Q1
- 1.19
- Min
- 0.37
HOOD’s P/B Ratio of 10.24 is in the upper tier for the Capital Markets 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.
TXN
11.50
Semiconductors & Semiconductor Equipment Industry
- Max
- 14.22
- Q3
- 6.94
- Median
- 4.29
- Q1
- 1.99
- Min
- 0.67
TXN’s P/B Ratio of 11.50 is in the upper tier for the Semiconductors & Semiconductor Equipment 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 | HOOD | TXN |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 69.16 | 33.10 |
| Price-to-Sales Ratio (TTM) | 34.67 | 10.01 |
| Price-to-Book Ratio (MRQ) | 10.24 | 11.50 |
| Price-to-Free Cash Flow Ratio (TTM) | 20.90 | 93.89 |