ARM vs TXN: stock comparison and AI forecast
Arm Holdings Plc /Uk (ARM) and Texas Instruments Inc (TXN) compared on price performance, valuation, profitability and the daily AI forecast. · Alpha · vs market
Share
ARM Arm Holdings Plc /Uk
- Market Cap
- $178.06B
- P/E Ratio
- 222.3x
- Size
- large-cap
- AI Forecast
TXN Texas Instruments Inc
- Price
- $278.15 -3.9% · 6M
- Market Cap
- $254.17B
- P/E Ratio
- 36.0x
- Size
- mega-cap
- AI Forecast
Which one does the AI model favor?
Intratio's model scores both stocks every trading day. Sign in to see their current direction; the exact ratings and forecasts come with a plan or a free follow slot.
Key facts
- TXN is 1.4 times larger than ARM by market capitalization ($254.17B against $178.06B).
- TXN trades at 36.0 times trailing earnings, ARM at 222.3 times.
- TXN turns 34.2% of its revenue into net income, against 17.1% for ARM.
- TXN carries 0.92 times debt per unit of equity, against 0.26 times for ARM.
- TXN yields 2.04% in dividends; ARM pays none.
- Both companies share the SEC industry classification Semiconductors & Related Devices.
Fundamentals side by side
Trailing twelve months.
Valuation & Market
| Metric | ARM | TXN |
|---|---|---|
| Market Cap | $178.06B | $254.17B |
| P/E Ratio | 222.29x | 36.03x |
| P/B Ratio | 19.59x | 13.25x |
| Dividend Yield | – | 2.04% |
| EPS | $0.75 | $7.72 |
| Book Value/Share | $8.51 | $21.00 |
| Revenue/Share | $5.12 | $22.73 |
| FCF/Share | $1.13 | $8.01 |
Profitability & Margins
| Metric | ARM | TXN |
|---|---|---|
| ROE | 10.3% | 37.1% |
| ROA | 8.2% | 19.3% |
| ROIC | 8.8% | 25.0% |
| Gross Margin | 97.4% | 60.2% |
| Operating Margin | 16.8% | 40.8% |
| Net Margin | 17.1% | 34.2% |
| EBT Margin | 21.4% | 39.1% |
| Tax Rate | 20.0% | 12.5% |
Financial Health
| Metric | ARM | TXN |
|---|---|---|
| Current Ratio | 6.35x | 5.59x |
| Quick Ratio | – | 4.05x |
| D/E Ratio | 0.26x | 0.92x |
| Financial Leverage | 1.26x | 1.92x |
| Working Capital | $5.21B | $13.86B |
Cash Flow
| Metric | ARM | TXN |
|---|---|---|
| Operating Cash Flow | $1.73B | $9.90B |
| Free Cash Flow | $1.21B | $7.32B |
| Capital Spending | -$522M | -$2.58B |
| OCF Growth YoY | 9.8% | 43.5% |
| FCF Growth YoY | 5.3% | 251.8% |
| FCF/Sales | 22.2% | 35.2% |
| CapEx/Sales | 9.6% | 12.4% |
Operational Efficiency
| Metric | ARM | TXN |
|---|---|---|
| Asset Turnover | 0.48x | 0.56x |
| Receivables Turnover | 5.0x | 7.9x |
| Inventory Turnover | – | 1.8x |
| Fixed Assets Turnover | 5.8x | 1.8x |
| Days Sales Outstanding | 73 days | 46 days |
| Days Inventory | – | 207 days |
| Payables Period | – | 37 days |
| Cash Conversion Cycle | – | 216 days |
Income Statement
| Metric | ARM | TXN |
|---|---|---|
| Total Revenue | $5.46B | $20.77B |
| Operating Income | $915M | $8.46B |
| Net Income | $936M | $7.11B |
| R&D Expense | $3.13B | $2.10B |
| SG&A Expense | $1.26B | $1.88B |
| Cost of Goods Sold | $140M | $8.26B |
Dividend & Shareholder Information
| Metric | ARM | TXN |
|---|---|---|
| Dividends Per Share | – | $5.66 |
| Payout Ratio | – | 73.3% |
| Shares Outstanding | 1068M | 914M |
| Net Income Growth | 12.8% | 41.0% |
| EPS Growth | -13.8% | 40.9% |
ARM vs TXN: stock comparison and AI forecast
Which is bigger, ARM or TXN?
TXN is 1.4 times larger than ARM by market capitalization ($254.17B against $178.06B).
Which is cheaper on earnings, ARM or TXN?
TXN trades at 36.0 times trailing earnings, ARM at 222.3 times.
Which one does Intratio's AI model rank higher, ARM or TXN?
Intratio's model scores both stocks every trading day. Sign in to see their current direction; the exact ratings and forecasts come with a plan or a free follow slot.
More comparisons
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.