ARW vs TXN

For growth investors, Texas Instruments Incorporated (TXN) is the stronger pick with 13.

0% revenue growth year-over-year, versus 10. 5% for Arrow Electronics, Inc. (ARW). Arrow Electronics, Inc. (ARW) offers the better valuation at 17. 6x trailing P/E (13. 6x forward), making it the more compelling value choice. Analysts rate Texas Instruments Incorporated (TXN) a "Buy" — based on 65 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Arrow Electronics, Inc.

(ARW) is the cheapest at 17. 6x versus Texas Instruments Incorporated at 53. 1x. On forward P/E, Arrow Electronics, Inc. is actually cheaper at 13. 6x.

Over the past 5 years, Texas Instruments Incorporated (TXN) delivered a total return of +70.

9%, compared to +67. 8% for Arrow Electronics, Inc. (ARW). Over 10 years, the gap is even starker: TXN returned +476. 1% versus ARW's +222. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Texas Instruments Incorporated (TXN) is the lower-risk stock at 1.

11β versus Arrow Electronics, Inc. 's 1. 32β — meaning ARW is approximately 19% more volatile than TXN relative to the S&P 500. On balance sheet safety, Arrow Electronics, Inc. (ARW) carries a lower debt/equity ratio of 46% versus 95% for Texas Instruments Incorporated — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Texas Instruments Incorporated (TXN) is pulling ahead at 13.

0% versus 10. 5% for Arrow Electronics, Inc. (ARW). On earnings-per-share growth, the picture is similar: Arrow Electronics, Inc. grew EPS 49. 9% year-over-year, compared to 4. 8% for Texas Instruments Incorporated. Over a 3-year CAGR, TXN leads at -4. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Texas Instruments Incorporated (TXN) is the more profitable company, earning 28.

3% net margin versus 1. 9% for Arrow Electronics, Inc. — meaning it keeps 28. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TXN leads at 34. 1% versus 3. 0% for ARW. At the gross margin level — before operating expenses — TXN leads at 57. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Arrow Electronics, Inc.

(ARW) trades at 13. 6x forward P/E versus 38. 3x for Texas Instruments Incorporated — 24. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TXN: -12. 3% to $253. 71.

In this comparison, TXN (1.

9% yield) pays a dividend. ARW does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Texas Instruments Incorporated (TXN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

11), 1. 9% yield, +476. 1% 10Y return). Both have compounded well over 10 years (TXN: +476. 1%, ARW: +222. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: ARW is a small-cap deep-value stock; TXN is a large-cap quality compounder stock. TXN pays a dividend while ARW does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.