Seek Returns logo

TER vs. TXN: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at TER and TXN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolTERTXN
Company NameTeradyne, Inc.Texas Instruments Incorporated
CountryUnited StatesUnited States
GICS SectorInformation TechnologyInformation Technology
GICS IndustrySemiconductors & Semiconductor EquipmentSemiconductors & Semiconductor Equipment
Market Capitalization22.45 billion USD167.78 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateFebruary 21, 1973June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of TER 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.

TER vs. TXN: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolTERTXN
5-Day Price Return3.33%-0.38%
13-Week Price Return53.07%-11.51%
26-Week Price Return56.39%-0.41%
52-Week Price Return2.23%-12.15%
Month-to-Date Return16.41%-9.26%
Year-to-Date Return9.31%-2.02%
10-Day Avg. Volume4.40M6.94M
3-Month Avg. Volume3.85M6.76M
3-Month Volatility54.78%35.17%
Beta1.881.03

Profitability

Return on Equity (TTM)

TER

16.52%

Semiconductors & Semiconductor Equipment Industry

Max
47.13%
Q3
23.50%
Median
9.94%
Q1
0.86%
Min
-20.69%

TER’s Return on Equity of 16.52% is on par with the norm for the Semiconductors & Semiconductor Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

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.

TER vs. TXN: A comparison of their Return on Equity (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Net Profit Margin (TTM)

TER

16.59%

Semiconductors & Semiconductor Equipment Industry

Max
52.41%
Q3
23.88%
Median
10.17%
Q1
1.21%
Min
-32.15%

TER’s Net Profit Margin of 16.59% is aligned with the median group of its peers in the Semiconductors & Semiconductor Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

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.

TER vs. TXN: A comparison of their Net Profit Margin (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Operating Profit Margin (TTM)

TER

18.29%

Semiconductors & Semiconductor Equipment Industry

Max
58.09%
Q3
27.54%
Median
11.18%
Q1
3.31%
Min
-28.36%

TER’s Operating Profit Margin of 18.29% is around the midpoint for the Semiconductors & Semiconductor Equipment 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.

TER vs. TXN: A comparison of their Operating Profit Margin (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Profitability at a Glance

SymbolTERTXN
Return on Equity (TTM)16.52%30.10%
Return on Assets (TTM)12.56%14.45%
Net Profit Margin (TTM)16.59%30.23%
Operating Profit Margin (TTM)18.29%34.89%
Gross Profit Margin (TTM)59.14%58.03%

Financial Strength

Current Ratio (MRQ)

TER

2.35

Semiconductors & Semiconductor Equipment Industry

Max
6.58
Q3
4.24
Median
2.73
Q1
2.13
Min
1.02

TER’s Current Ratio of 2.35 aligns with the median group of the Semiconductors & Semiconductor Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

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.

TER vs. TXN: A comparison of their Current Ratio (MRQ) against the Semiconductors & Semiconductor Equipment industry benchmark.

Debt-to-Equity Ratio (MRQ)

TER

0.00

Semiconductors & Semiconductor Equipment Industry

Max
1.09
Q3
0.48
Median
0.25
Q1
0.01
Min
0.00

Falling into the lower quartile for the Semiconductors & Semiconductor Equipment industry, TER’s Debt-to-Equity Ratio of 0.00 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

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.

TER vs. TXN: A comparison of their Debt-to-Equity Ratio (MRQ) against the Semiconductors & Semiconductor Equipment industry benchmark.

Interest Coverage Ratio (TTM)

TER

135.68

Semiconductors & Semiconductor Equipment Industry

Max
174.00
Q3
74.71
Median
26.06
Q1
6.43
Min
-7.80

TER’s Interest Coverage Ratio of 135.68 is in the upper quartile for the Semiconductors & Semiconductor Equipment industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

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.

TER vs. TXN: A comparison of their Interest Coverage Ratio (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Financial Strength at a Glance

SymbolTERTXN
Current Ratio (MRQ)2.355.81
Quick Ratio (MRQ)1.212.93
Debt-to-Equity Ratio (MRQ)0.000.86
Interest Coverage Ratio (TTM)135.6811.73

Growth

Revenue Growth

TER vs. TXN: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

TER vs. TXN: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

TER

0.35%

Semiconductors & Semiconductor Equipment Industry

Max
3.72%
Q3
1.51%
Median
0.69%
Q1
0.00%
Min
0.00%

TER’s Dividend Yield of 0.35% is consistent with its peers in the Semiconductors & Semiconductor Equipment industry, providing a dividend return that is standard for its sector.

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.

TER vs. TXN: A comparison of their Dividend Yield (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Dividend Payout Ratio (TTM)

TER

16.55%

Semiconductors & Semiconductor Equipment Industry

Max
205.27%
Q3
88.01%
Median
27.13%
Q1
0.00%
Min
0.00%

TER’s Dividend Payout Ratio of 16.55% is within the typical range for the Semiconductors & Semiconductor Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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.

TER vs. TXN: A comparison of their Dividend Payout Ratio (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Dividend at a Glance

SymbolTERTXN
Dividend Yield (TTM)0.35%2.94%
Dividend Payout Ratio (TTM)16.55%97.20%

Valuation

Price-to-Earnings Ratio (TTM)

TER

47.71

Semiconductors & Semiconductor Equipment Industry

Max
106.30
Q3
61.93
Median
38.96
Q1
23.71
Min
13.06

TER’s P/E Ratio of 47.71 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.

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.

TER vs. TXN: A comparison of their Price-to-Earnings Ratio (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Price-to-Sales Ratio (TTM)

TER

7.92

Semiconductors & Semiconductor Equipment Industry

Max
19.99
Q3
10.21
Median
5.23
Q1
2.88
Min
1.13

TER’s P/S Ratio of 7.92 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.

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.

TER vs. TXN: A comparison of their Price-to-Sales Ratio (TTM) against the Semiconductors & Semiconductor Equipment industry benchmark.

Price-to-Book Ratio (MRQ)

TER

5.08

Semiconductors & Semiconductor Equipment Industry

Max
14.22
Q3
6.94
Median
4.29
Q1
1.99
Min
0.67

TER’s P/B Ratio of 5.08 is within the conventional range for the Semiconductors & Semiconductor Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

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.

TER vs. TXN: A comparison of their Price-to-Book Ratio (MRQ) against the Semiconductors & Semiconductor Equipment industry benchmark.

Valuation at a Glance

SymbolTERTXN
Price-to-Earnings Ratio (TTM)47.7133.10
Price-to-Sales Ratio (TTM)7.9210.01
Price-to-Book Ratio (MRQ)5.0811.50
Price-to-Free Cash Flow Ratio (TTM)39.3593.89