Comprehensive Stock Comparison
Compare QUALCOMM Incorporated (QCOM) vs Texas Instruments Incorporated (TXN) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | QCOM | 13.7% revenue growth vs TXN's 13.0% |
| Value | QCOM | Lower P/E (12.7x vs 33.0x) |
| Quality / Margins | TXN | 28.3% net margin vs QCOM's 12.0% |
| Stability / Safety | TXN | Beta 1.29 vs QCOM's 1.48 |
| Dividends | TXN | 2.6% yield, 22-year raise streak, vs QCOM's 2.4% |
| Momentum (1Y) | TXN | +11.1% vs QCOM's -7.2% |
| Efficiency (ROA) | TXN | 14.5% ROA vs QCOM's 10.1%, ROIC 16.6% vs 29.1% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Qualcomm is a semiconductor and wireless technology company that designs and licenses foundational technologies for mobile communications. It generates revenue primarily through selling smartphone chipsets (~75% of revenue) and licensing its extensive patent portfolio for wireless standards like 5G (~25% of revenue). The company's key advantage is its massive portfolio of essential wireless patents—particularly in CDMA and 5G—which creates a licensing moat that generates high-margin recurring revenue.
Texas Instruments is a semiconductor company that designs and manufactures analog and embedded processing chips for industrial, automotive, and consumer electronics applications. It generates revenue primarily from analog chips (~75% of sales) and embedded processors (~25%), selling directly to electronics manufacturers across multiple industries. The company's competitive advantage stems from its deep expertise in analog technology—which is difficult to replicate—and its efficient manufacturing scale through its own fabrication facilities.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
TXN leads in 3 of 6 categories (Financial Metrics, Total Returns). QCOM leads in 2 (Valuation Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
QCOM is the larger business by revenue, generating $44.9B annually — 2.5x TXN's $17.7B. TXN is the more profitable business, keeping 28.3% of every revenue dollar as net income compared to QCOM's 12.0%. On growth, TXN holds the edge at +10.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | QCOMQUALCOMM Incorpor… | TXNTexas Instruments… |
|---|---|---|
| RevenueTrailing 12 months | $44.9B | $17.7B |
| EBITDAEarnings before interest/tax | $13.3B | $8.0B |
| Net IncomeAfter-tax profit | $5.4B | $5.0B |
| Free Cash FlowCash after capex | $12.9B | $2.6B |
| Gross MarginGross profit ÷ Revenue | +55.1% | +57.0% |
| Operating MarginEBIT ÷ Revenue | +27.1% | +34.1% |
| Net MarginNet income ÷ Revenue | +12.0% | +28.3% |
| FCF MarginFCF ÷ Revenue | +28.8% | +14.7% |
| Rev. Growth (YoY)Latest quarter vs prior year | +5.0% | +10.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.8% | -1.5% |
Valuation Metrics
At 28.4x trailing earnings, QCOM trades at a 27% valuation discount to TXN's 38.9x P/E. On an enterprise value basis, QCOM's 11.6x EV/EBITDA is more attractive than TXN's 25.3x.
| Metric | QCOMQUALCOMM Incorpor… | TXNTexas Instruments… |
|---|---|---|
| Market CapShares × price | $152.9B | $192.5B |
| Enterprise ValueMkt cap + debt − cash | $161.4B | $203.3B |
| Trailing P/EPrice ÷ TTM EPS | 28.42x | 38.92x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.74x | 33.02x |
| PEG RatioP/E ÷ EPS growth rate | 13.66x | — |
| EV / EBITDAEnterprise value multiple | 11.57x | 25.35x |
| Price / SalesMarket cap ÷ Revenue | 3.45x | 10.89x |
| Price / BookPrice ÷ Book value/share | 7.42x | 11.90x |
| Price / FCFMarket cap ÷ FCF | 11.93x | 73.95x |
Profitability & Efficiency
TXN delivers a 30.7% return on equity — every $100 of shareholder capital generates $31 in annual profit, vs $23 for QCOM. QCOM carries lower financial leverage with a 0.77x debt-to-equity ratio, signaling a more conservative balance sheet compared to TXN's 0.86x. On the Piotroski fundamental quality scale (0–9), TXN scores 7/9 vs QCOM's 6/9, reflecting strong financial health.
| Metric | QCOMQUALCOMM Incorpor… | TXNTexas Instruments… |
|---|---|---|
| ROE (TTM)Return on equity | +23.3% | +30.7% |
| ROA (TTM)Return on assets | +10.1% | +14.5% |
| ROICReturn on invested capital | +29.1% | +16.6% |
| ROCEReturn on capital employed | +28.9% | +19.0% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.77x | 0.86x |
| Net DebtTotal debt minus cash | $8.5B | $10.8B |
| Cash & Equiv.Liquid assets | $7.8B | $3.2B |
| Total DebtShort + long-term debt | $16.4B | $14.0B |
| Interest CoverageEBIT ÷ Interest expense | 18.76x | 11.52x |
Total Returns (with DRIP)
A $10,000 investment in TXN five years ago would be worth $13,350 today (with dividends reinvested), compared to $11,332 for QCOM. Over the past 12 months, TXN leads with a +11.1% total return vs QCOM's -7.2%. The 3-year compound annual growth rate (CAGR) favors TXN at 10.0% vs QCOM's 7.2% — a key indicator of consistent wealth creation.
| Metric | QCOMQUALCOMM Incorpor… | TXNTexas Instruments… |
|---|---|---|
| YTD ReturnYear-to-date | -17.7% | +20.3% |
| 1-Year ReturnPast 12 months | -7.2% | +11.1% |
| 3-Year ReturnCumulative with dividends | +23.4% | +33.0% |
| 5-Year ReturnCumulative with dividends | +13.3% | +33.5% |
| 10-Year ReturnCumulative with dividends | +234.4% | +373.7% |
| CAGR (3Y)Annualised 3-year return | +7.2% | +10.0% |
Risk & Volatility
TXN is the less volatile stock with a 1.29 beta — it tends to amplify market swings less than QCOM's 1.48 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TXN currently trades 91.7% from its 52-week high vs QCOM's 69.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | QCOMQUALCOMM Incorpor… | TXNTexas Instruments… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.48x | 1.29x |
| 52-Week HighHighest price in past year | $205.95 | $231.32 |
| 52-Week LowLowest price in past year | $120.80 | $139.95 |
| % of 52W HighCurrent price vs 52-week peak | +69.1% | +91.7% |
| RSI (14)Momentum oscillator 0–100 | 45.9 | 49.7 |
| Avg Volume (50D)Average daily shares traded | 8.1M | 6.7M |
Analyst Outlook
Wall Street rates QCOM as "Buy" and TXN as "Buy". Consensus price targets imply 13.4% upside for QCOM (target: $162) vs -0.2% for TXN (target: $212). For income investors, TXN offers the higher dividend yield at 2.58% vs QCOM's 2.42%.
| Metric | QCOMQUALCOMM Incorpor… | TXNTexas Instruments… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $161.50 | $211.79 |
| # AnalystsCovering analysts | 67 | 65 |
| Dividend YieldAnnual dividend ÷ price | +2.4% | +2.6% |
| Dividend StreakConsecutive years of raises | 23 | 22 |
| Dividend / ShareAnnual DPS | $3.44 | $5.48 |
| Buyback YieldShare repurchases ÷ mkt cap | +5.7% | +0.8% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 100 | 194.92 | +94.9% |
| Texas Instruments I… (TXN) | 100 | 197.14 | +97.1% |
Texas Instruments I… (TXN) returned +34% over 5 years vs QUALCOMM Incorporat… (QCOM)'s +13%. A $10,000 investment in TXN 5 years ago would be worth $13,350 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | $23.6B | $44.3B | +88.0% |
| Texas Instruments I… (TXN) | $13.4B | $17.7B | +32.3% |
QUALCOMM Incorporated's revenue grew from $23.6B (2016) to $44.3B (2025) — a 7.3% CAGR. Texas Instruments Incorporated's revenue grew from $13.4B (2016) to $17.7B (2025) — a 3.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 24.2% | 12.5% | -48.3% |
| Texas Instruments I… (TXN) | 26.9% | 28.3% | +5.2% |
QUALCOMM Incorporated's net margin went from 24% (2016) to 13% (2025). Texas Instruments Incorporated's net margin went from 27% (2016) to 28% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 39 | 34.1 | -12.6% |
| Texas Instruments I… (TXN) | 28.9 | 31.8 | +10.0% |
QUALCOMM Incorporated has traded in a 10x–39x P/E range over 8 years; current trailing P/E is ~28x. Texas Instruments Incorporated has traded in a 17x–36x P/E range over 9 years; current trailing P/E is ~39x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| QUALCOMM Incorporat… (QCOM) | 3.81 | 5.01 | +31.5% |
| Texas Instruments I… (TXN) | 3.48 | 5.45 | +56.6% |
QUALCOMM Incorporated's EPS grew from $3.81 (2016) to $5.01 (2025) — a 3% CAGR. Texas Instruments Incorporated's EPS grew from $3.48 (2016) to $5.45 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
QUALCOMM Incorporated generated $13B FCF in 2025 (+48% vs 2021). Texas Instruments Incorporated generated $3B FCF in 2025 (-59% vs 2021).
QCOM vs TXN: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is QCOM or TXN a better buy right now?
QUALCOMM Incorporated (QCOM) offers the better valuation at 28.4x trailing P/E (12.7x forward), making it the more compelling value choice. Analysts rate QUALCOMM Incorporated (QCOM) a "Buy" — based on 67 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.
02Which has the better valuation — QCOM or TXN?
On trailing P/E, QUALCOMM Incorporated (QCOM) is the cheapest at 28.4x versus Texas Instruments Incorporated at 38.9x. On forward P/E, QUALCOMM Incorporated is actually cheaper at 12.7x.
03Which is the better long-term investment — QCOM or TXN?
Over the past 5 years, Texas Instruments Incorporated (TXN) delivered a total return of +33.5%, compared to +13.3% for QUALCOMM Incorporated (QCOM). A $10,000 investment in TXN five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TXN returned +373.7% versus QCOM's +234.4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — QCOM or TXN?
By beta (market sensitivity over 5 years), Texas Instruments Incorporated (TXN) is the lower-risk stock at 1.29β versus QUALCOMM Incorporated's 1.48β — meaning QCOM is approximately 14% more volatile than TXN relative to the S&P 500. On balance sheet safety, QUALCOMM Incorporated (QCOM) carries a lower debt/equity ratio of 77% versus 86% for Texas Instruments Incorporated — giving it more financial flexibility in a downturn.
05Which has better profit margins — QCOM or TXN?
Texas Instruments Incorporated (TXN) is the more profitable company, earning 28.3% net margin versus 12.5% for QUALCOMM Incorporated — 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 27.9% for QCOM. 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.
06Is QCOM or TXN more undervalued right now?
On forward earnings alone, QUALCOMM Incorporated (QCOM) trades at 12.7x forward P/E versus 33.0x for Texas Instruments Incorporated — 20.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for QCOM: 13.4% to $161.50.
07Which pays a better dividend — QCOM or TXN?
All stocks in this comparison pay dividends. Texas Instruments Incorporated (TXN) offers the highest yield at 2.6%, versus 2.4% for QUALCOMM Incorporated (QCOM).
08Is QCOM or TXN better for a retirement portfolio?
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%, QCOM: +234.4%), 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.
09What are the main differences between QCOM and TXN?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. 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.
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