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TEL vs TXN
Revenue, margins, valuation, and 5-year total return — side by side.
Semiconductors
TEL vs TXN — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Hardware, Equipment & Parts | Semiconductors |
| Market Cap | $61.60B | $259.70B |
| Revenue (TTM) | $18.52B | $18.44B |
| Net Income (TTM) | $2.91B | $5.37B |
| Gross Margin | 35.4% | 57.3% |
| Operating Margin | 19.3% | 35.3% |
| Forward P/E | 18.7x | 37.8x |
| Total Debt | $6.55B | $15.39B |
| Cash & Equiv. | $1.25B | $3.23B |
TEL vs TXN — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| TE Connectivity Ltd. (TEL) | 100 | 258.4 | +158.4% |
| Texas Instruments I… (TXN) | 100 | 240.2 | +140.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TEL vs TXN
Each card shows where this stock fits in a portfolio — not just who wins on paper.
TEL is the clearest fit if your priority is value.
- Lower P/E (18.7x vs 37.8x)
TXN carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 22 yrs, beta 1.11, yield 1.9%
- Rev growth 13.0%, EPS growth 4.8%, 3Y rev CAGR -4.1%
- 471.6% 10Y total return vs TEL's 291.2%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 13.0% revenue growth vs TEL's 7.9% | |
| Value | Lower P/E (18.7x vs 37.8x) | |
| Quality / Margins | 29.1% margin vs TEL's 15.7% | |
| Stability / Safety | Beta 1.11 vs TEL's 1.58 | |
| Dividends | 1.9% yield, 22-year raise streak, vs TEL's 1.3% | |
| Momentum (1Y) | +76.5% vs TEL's +42.1% | |
| Efficiency (ROA) | 15.5% ROA vs TEL's 11.5%, ROIC 15.8% vs 14.1% |
TEL vs TXN — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
TEL vs TXN — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
TXN leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
TEL and TXN operate at a comparable scale, with $18.5B and $18.4B in trailing revenue. TXN is the more profitable business, keeping 29.1% of every revenue dollar as net income compared to TEL's 15.7%. On growth, TXN holds the edge at +18.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $18.5B | $18.4B |
| EBITDAEarnings before interest/tax | $4.3B | $8.1B |
| Net IncomeAfter-tax profit | $2.9B | $5.4B |
| Free Cash FlowCash after capex | $3.4B | $3.7B |
| Gross MarginGross profit ÷ Revenue | +35.4% | +57.3% |
| Operating MarginEBIT ÷ Revenue | +19.3% | +35.3% |
| Net MarginNet income ÷ Revenue | +15.7% | +29.1% |
| FCF MarginFCF ÷ Revenue | +18.3% | +20.2% |
| Rev. Growth (YoY)Latest quarter vs prior year | +14.5% | +18.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +66.0% | +32.0% |
Valuation Metrics
TEL leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
At 34.1x trailing earnings, TEL trades at a 35% valuation discount to TXN's 52.3x P/E. On an enterprise value basis, TEL's 16.5x EV/EBITDA is more attractive than TXN's 33.9x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $61.6B | $259.7B |
| Enterprise ValueMkt cap + debt − cash | $66.9B | $271.9B |
| Trailing P/EPrice ÷ TTM EPS | 34.08x | 52.34x |
| Forward P/EPrice ÷ next-FY EPS est. | 18.72x | 37.76x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 16.52x | 33.89x |
| Price / SalesMarket cap ÷ Revenue | 3.60x | 14.69x |
| Price / BookPrice ÷ Book value/share | 4.93x | 16.00x |
| Price / FCFMarket cap ÷ FCF | 19.23x | 99.77x |
Profitability & Efficiency
TXN leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
TXN delivers a 32.5% return on equity — every $100 of shareholder capital generates $32 in annual profit, vs $22 for TEL. TEL carries lower financial leverage with a 0.51x debt-to-equity ratio, signaling a more conservative balance sheet compared to TXN's 0.95x. On the Piotroski fundamental quality scale (0–9), TXN scores 7/9 vs TEL's 5/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +22.5% | +32.5% |
| ROA (TTM)Return on assets | +11.5% | +15.5% |
| ROICReturn on invested capital | +14.1% | +15.8% |
| ROCEReturn on capital employed | +16.9% | +19.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.51x | 0.95x |
| Net DebtTotal debt minus cash | $5.3B | $12.2B |
| Cash & Equiv.Liquid assets | $1.3B | $3.2B |
| Total DebtShort + long-term debt | $6.5B | $15.4B |
| Interest CoverageEBIT ÷ Interest expense | 31.48x | 12.06x |
Total Returns (Dividends Reinvested)
TXN leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TXN five years ago would be worth $16,549 today (with dividends reinvested), compared to $16,086 for TEL. Over the past 12 months, TXN leads with a +76.5% total return vs TEL's +42.1%. The 3-year compound annual growth rate (CAGR) favors TXN at 22.4% vs TEL's 21.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -9.7% | +62.3% |
| 1-Year ReturnPast 12 months | +42.1% | +76.5% |
| 3-Year ReturnCumulative with dividends | +77.5% | +83.5% |
| 5-Year ReturnCumulative with dividends | +60.9% | +65.5% |
| 10-Year ReturnCumulative with dividends | +291.2% | +471.6% |
| CAGR (3Y)Annualised 3-year return | +21.1% | +22.4% |
Risk & Volatility
TXN leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
TXN is the less volatile stock with a 1.11 beta — it tends to amplify market swings less than TEL's 1.58 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TXN currently trades 97.5% from its 52-week high vs TEL's 83.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.58x | 1.11x |
| 52-Week HighHighest price in past year | $252.56 | $292.64 |
| 52-Week LowLowest price in past year | $147.80 | $152.73 |
| % of 52W HighCurrent price vs 52-week peak | +83.1% | +97.5% |
| RSI (14)Momentum oscillator 0–100 | 49.8 | 79.6 |
| Avg Volume (50D)Average daily shares traded | 2.3M | 6.7M |
Analyst Outlook
TXN leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates TEL as "Buy" and TXN as "Buy". Consensus price targets imply 25.1% upside for TEL (target: $263) vs -11.1% for TXN (target: $254). For income investors, TXN offers the higher dividend yield at 1.92% vs TEL's 1.28%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $262.57 | $253.71 |
| # AnalystsCovering analysts | 29 | 65 |
| Dividend YieldAnnual dividend ÷ price | +1.3% | +1.9% |
| Dividend StreakConsecutive years of raises | 15 | 22 |
| Dividend / ShareAnnual DPS | $2.69 | $5.48 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.2% | +0.6% |
TXN leads in 5 of 6 categories (Income & Cash Flow, Profitability & Efficiency). TEL leads in 1 (Valuation Metrics).
TEL vs TXN: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TEL or TXN a better buy right now?
For growth investors, Texas Instruments Incorporated (TXN) is the stronger pick with 13.
0% revenue growth year-over-year, versus 7. 9% for TE Connectivity Ltd. (TEL). TE Connectivity Ltd. (TEL) offers the better valuation at 34. 1x trailing P/E (18. 7x forward), making it the more compelling value choice. Analysts rate TE Connectivity Ltd. (TEL) a "Buy" — based on 29 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 — TEL or TXN?
On trailing P/E, TE Connectivity Ltd.
(TEL) is the cheapest at 34. 1x versus Texas Instruments Incorporated at 52. 3x. On forward P/E, TE Connectivity Ltd. is actually cheaper at 18. 7x.
03Which is the better long-term investment — TEL or TXN?
Over the past 5 years, Texas Instruments Incorporated (TXN) delivered a total return of +65.
5%, compared to +60. 9% for TE Connectivity Ltd. (TEL). Over 10 years, the gap is even starker: TXN returned +471. 6% versus TEL's +291. 2%. 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 — TEL or TXN?
By beta (market sensitivity over 5 years), Texas Instruments Incorporated (TXN) is the lower-risk stock at 1.
11β versus TE Connectivity Ltd. 's 1. 58β — meaning TEL is approximately 43% more volatile than TXN relative to the S&P 500. On balance sheet safety, TE Connectivity Ltd. (TEL) carries a lower debt/equity ratio of 51% versus 95% for Texas Instruments Incorporated — giving it more financial flexibility in a downturn.
05Which is growing faster — TEL or TXN?
By revenue growth (latest reported year), Texas Instruments Incorporated (TXN) is pulling ahead at 13.
0% versus 7. 9% for TE Connectivity Ltd. (TEL). On earnings-per-share growth, the picture is similar: Texas Instruments Incorporated grew EPS 4. 8% year-over-year, compared to -40. 4% for TE Connectivity Ltd.. Over a 3-year CAGR, TEL leads at 1. 6% 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.
06Which has better profit margins — TEL or TXN?
Texas Instruments Incorporated (TXN) is the more profitable company, earning 28.
3% net margin versus 10. 8% for TE Connectivity Ltd. — 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 18. 8% for TEL. 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.
07Is TEL or TXN more undervalued right now?
On forward earnings alone, TE Connectivity Ltd.
(TEL) trades at 18. 7x forward P/E versus 37. 8x for Texas Instruments Incorporated — 19. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TEL: 25. 1% to $262. 57.
08Which pays a better dividend — TEL or TXN?
All stocks in this comparison pay dividends.
Texas Instruments Incorporated (TXN) offers the highest yield at 1. 9%, versus 1. 3% for TE Connectivity Ltd. (TEL).
09Is TEL 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.
11), 1. 9% yield, +471. 6% 10Y return). TE Connectivity Ltd. (TEL) carries a higher beta of 1. 58 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TXN: +471. 6%, TEL: +291. 2%), 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.
10What are the main differences between TEL 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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