Comprehensive Stock Comparison
Compare Texas Instruments Incorporated (TXN) vs Apple Inc. (AAPL) 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 | TXN | 13.0% revenue growth vs AAPL's 6.4% |
| Value | AAPL | Lower P/E (31.1x vs 33.0x) |
| Quality / Margins | TXN | 28.3% net margin vs AAPL's 27.0% |
| Stability / Safety | AAPL | Beta 1.28 vs TXN's 1.29 |
| Dividends | TXN | 2.6% yield, 22-year raise streak, vs AAPL's 0.4% |
| Momentum (1Y) | TXN | +11.1% vs AAPL's +9.7% |
| Efficiency (ROA) | AAPL | 31.1% ROA vs TXN's 14.5%, ROIC 64.5% vs 16.6% |
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
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.
Apple is a technology giant that designs and sells premium consumer electronics — most famously the iPhone — along with related software and services. It generates revenue primarily from hardware sales (roughly 80% of total) and a fast-growing services segment (around 20%) that includes the App Store, subscriptions, and licensing. Its key competitive advantage is a powerful ecosystem that locks users into its hardware, software, and services through seamless integration and high switching costs.
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
AAPL leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). TXN leads in 1 (Analyst Outlook). 2 tied.
Financial Metrics (TTM)
AAPL is the larger business by revenue, generating $435.6B annually — 24.6x TXN's $17.7B. Profitability is closely matched — net margins range from 28.3% (TXN) to 27.0% (AAPL). On growth, AAPL holds the edge at +15.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TXNTexas Instruments… | AAPLApple Inc. |
|---|---|---|
| RevenueTrailing 12 months | $17.7B | $435.6B |
| EBITDAEarnings before interest/tax | $8.0B | $152.9B |
| Net IncomeAfter-tax profit | $5.0B | $117.8B |
| Free Cash FlowCash after capex | $2.6B | $123.3B |
| Gross MarginGross profit ÷ Revenue | +57.0% | +47.3% |
| Operating MarginEBIT ÷ Revenue | +34.1% | +32.4% |
| Net MarginNet income ÷ Revenue | +28.3% | +27.0% |
| FCF MarginFCF ÷ Revenue | +14.7% | +28.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +10.4% | +15.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -1.5% | +18.3% |
Valuation Metrics
At 35.4x trailing earnings, AAPL trades at a 9% valuation discount to TXN's 38.9x P/E. On an enterprise value basis, TXN's 25.3x EV/EBITDA is more attractive than AAPL's 27.5x.
| Metric | TXNTexas Instruments… | AAPLApple Inc. |
|---|---|---|
| Market CapShares × price | $192.5B | $3.88T |
| Enterprise ValueMkt cap + debt − cash | $203.3B | $3.97T |
| Trailing P/EPrice ÷ TTM EPS | 38.92x | 35.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 33.02x | 31.15x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.98x |
| EV / EBITDAEnterprise value multiple | 25.35x | 27.45x |
| Price / SalesMarket cap ÷ Revenue | 10.89x | 9.33x |
| Price / BookPrice ÷ Book value/share | 11.90x | 53.76x |
| Price / FCFMarket cap ÷ FCF | 73.95x | 39.33x |
Profitability & Efficiency
AAPL delivers a 133.5% return on equity — every $100 of shareholder capital generates $134 in annual profit, vs $31 for TXN. TXN carries lower financial leverage with a 0.86x debt-to-equity ratio, signaling a more conservative balance sheet compared to AAPL's 1.67x.
| Metric | TXNTexas Instruments… | AAPLApple Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +30.7% | +133.5% |
| ROA (TTM)Return on assets | +14.5% | +31.1% |
| ROICReturn on invested capital | +16.6% | +64.5% |
| ROCEReturn on capital employed | +19.0% | +69.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 7 |
| Debt / EquityFinancial leverage | 0.86x | 1.67x |
| Net DebtTotal debt minus cash | $10.8B | $89.7B |
| Cash & Equiv.Liquid assets | $3.2B | $33.5B |
| Total DebtShort + long-term debt | $14.0B | $123.3B |
| Interest CoverageEBIT ÷ Interest expense | 11.52x | — |
Total Returns (with DRIP)
A $10,000 investment in AAPL five years ago would be worth $21,049 today (with dividends reinvested), compared to $13,350 for TXN. Over the past 12 months, TXN leads with a +11.1% total return vs AAPL's +9.7%. The 3-year compound annual growth rate (CAGR) favors AAPL at 21.9% vs TXN's 10.0% — a key indicator of consistent wealth creation.
| Metric | TXNTexas Instruments… | AAPLApple Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +20.3% | -2.4% |
| 1-Year ReturnPast 12 months | +11.1% | +9.7% |
| 3-Year ReturnCumulative with dividends | +33.0% | +81.2% |
| 5-Year ReturnCumulative with dividends | +33.5% | +110.5% |
| 10-Year ReturnCumulative with dividends | +373.7% | +1027.4% |
| CAGR (3Y)Annualised 3-year return | +10.0% | +21.9% |
Risk & Volatility
AAPL is the less volatile stock with a 1.28 beta — it tends to amplify market swings less than TXN's 1.29 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TXNTexas Instruments… | AAPLApple Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.29x | 1.28x |
| 52-Week HighHighest price in past year | $231.32 | $288.61 |
| 52-Week LowLowest price in past year | $139.95 | $169.21 |
| % of 52W HighCurrent price vs 52-week peak | +91.7% | +91.5% |
| RSI (14)Momentum oscillator 0–100 | 49.7 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 6.7M | 40.9M |
Analyst Outlook
Wall Street rates TXN as "Buy" and AAPL as "Buy". Consensus price targets imply 14.7% upside for AAPL (target: $303) vs -0.2% for TXN (target: $212). For income investors, TXN offers the higher dividend yield at 2.58% vs AAPL's 0.39%.
| Metric | TXNTexas Instruments… | AAPLApple Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $211.79 | $303.11 |
| # AnalystsCovering analysts | 65 | 109 |
| Dividend YieldAnnual dividend ÷ price | +2.6% | +0.4% |
| Dividend StreakConsecutive years of raises | 22 | 14 |
| Dividend / ShareAnnual DPS | $5.48 | $1.03 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.8% | +2.3% |
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 |
|---|---|---|---|
| Texas Instruments I… (TXN) | 100 | 197.14 | +97.1% |
| Apple Inc. (AAPL) | 100 | 395.1 | +295.1% |
Apple Inc. (AAPL) returned +110% over 5 years vs Texas Instruments I… (TXN)'s +34%. A $10,000 investment in AAPL 5 years ago would be worth $21,049 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Texas Instruments I… (TXN) | $13.4B | $17.7B | +32.3% |
| Apple Inc. (AAPL) | $215.6B | $416.2B | +93.0% |
Texas Instruments Incorporated's revenue grew from $13.4B (2016) to $17.7B (2025) — a 3.2% CAGR. Apple Inc.'s revenue grew from $215.6B (2016) to $416.2B (2025) — a 7.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Texas Instruments I… (TXN) | 26.9% | 28.3% | +5.2% |
| Apple Inc. (AAPL) | 21.2% | 26.9% | +27.0% |
Texas Instruments Incorporated's net margin went from 27% (2016) to 28% (2025). Apple Inc.'s net margin went from 21% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Texas Instruments I… (TXN) | 28.9 | 31.8 | +10.0% |
| Apple Inc. (AAPL) | 18.4 | 36.4 | +97.8% |
Texas Instruments Incorporated has traded in a 17x–36x P/E range over 9 years; current trailing P/E is ~39x. Apple Inc. has traded in a 13x–41x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Texas Instruments I… (TXN) | 3.48 | 5.45 | +56.6% |
| Apple Inc. (AAPL) | 2.08 | 7.46 | +258.7% |
Texas Instruments Incorporated's EPS grew from $3.48 (2016) to $5.45 (2025) — a 5% CAGR. Apple Inc.'s EPS grew from $2.08 (2016) to $7.46 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Texas Instruments Incorporated generated $3B FCF in 2025 (-59% vs 2021). Apple Inc. generated $99B FCF in 2025 (+6% vs 2021).
TXN vs AAPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TXN or AAPL a better buy right now?
Apple Inc. (AAPL) offers the better valuation at 35.4x trailing P/E (31.1x 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.
02Which has the better valuation — TXN or AAPL?
On trailing P/E, Apple Inc. (AAPL) is the cheapest at 35.4x versus Texas Instruments Incorporated at 38.9x. On forward P/E, Apple Inc. is actually cheaper at 31.1x.
03Which is the better long-term investment — TXN or AAPL?
Over the past 5 years, Apple Inc. (AAPL) delivered a total return of +110.5%, compared to +33.5% for Texas Instruments Incorporated (TXN). A $10,000 investment in AAPL five years ago would be worth approximately $21K today (assuming dividends reinvested). Over 10 years, the gap is even starker: AAPL returned +1027% versus TXN's +373.7%. 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 — TXN or AAPL?
By beta (market sensitivity over 5 years), Apple Inc. (AAPL) is the lower-risk stock at 1.28β versus Texas Instruments Incorporated's 1.29β — meaning TXN is approximately 1% more volatile than AAPL relative to the S&P 500. On balance sheet safety, Texas Instruments Incorporated (TXN) carries a lower debt/equity ratio of 86% versus 167% for Apple Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TXN or AAPL?
Texas Instruments Incorporated (TXN) is the more profitable company, earning 28.3% net margin versus 26.9% for Apple 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 32.0% for AAPL. 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 TXN or AAPL more undervalued right now?
On forward earnings alone, Apple Inc. (AAPL) trades at 31.1x forward P/E versus 33.0x for Texas Instruments Incorporated — 1.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AAPL: 14.7% to $303.11.
07Which pays a better dividend — TXN or AAPL?
All stocks in this comparison pay dividends. Texas Instruments Incorporated (TXN) offers the highest yield at 2.6%, versus 0.4% for Apple Inc. (AAPL).
08Is TXN or AAPL 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%, AAPL: +1027%), 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 TXN and AAPL?
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 AAPL 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.
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