Compare Cirrus Logic, Inc. (CRUS) vs Texas Instruments Incorporated (TXN) Stock

Cirrus Logic, Inc. (CRUS) offers the better valuation at 23.5x trailing P/E (15.6x forward), making it the more compelling value choice. Analysts rate Cirrus Logic, Inc. (CRUS) a "Buy" — based on 22 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, Cirrus Logic, Inc. (CRUS) is the cheapest at 23.5x versus Texas Instruments Incorporated at 38.9x. On forward P/E, Cirrus Logic, Inc. is actually cheaper at 15.6x.

Over the past 5 years, Cirrus Logic, Inc. (CRUS) delivered a total return of +69.4%, compared to +33.5% for Texas Instruments Incorporated (TXN). A $10,000 investment in CRUS five years ago would be worth approximately $17K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TXN returned +373.7% versus CRUS's +300.6%. 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 1.29β versus Cirrus Logic, Inc.'s 1.30β — meaning CRUS is approximately 0% more volatile than TXN relative to the S&P 500. On balance sheet safety, Cirrus Logic, Inc. (CRUS) carries a lower debt/equity ratio of 7% versus 86% for Texas Instruments Incorporated — giving it more financial flexibility in a downturn.

Texas Instruments Incorporated (TXN) is the more profitable company, earning 28.3% net margin versus 17.5% for Cirrus Logic, 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 21.6% for CRUS. 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, Cirrus Logic, Inc. (CRUS) trades at 15.6x forward P/E versus 33.0x for Texas Instruments Incorporated — 17.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CRUS: 2.4% to $144.50.

In this comparison, TXN (2.6% yield) pays a dividend. CRUS 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 1.29), 2.6% yield, +373.7% 10Y return). Both have compounded well over 10 years (TXN: +373.7%, CRUS: +300.6%), 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. TXN pays a dividend while CRUS 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.