UMC vs TXN

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

0% revenue growth year-over-year, versus 2. 3% for United Microelectronics Corporation (UMC). United Microelectronics Corporation (UMC) offers the better valuation at 28. 4x trailing P/E (22. 2x 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, United Microelectronics Corporation (UMC) is the cheapest at 28.

4x versus Texas Instruments Incorporated at 52. 3x. On forward P/E, United Microelectronics Corporation is actually cheaper at 22. 2x.

Over the past 5 years, United Microelectronics Corporation (UMC) delivered a total return of +81.

3%, compared to +65. 5% for Texas Instruments Incorporated (TXN). Over 10 years, the gap is even starker: UMC returned +895. 3% versus TXN's +471. 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), United Microelectronics Corporation (UMC) is the lower-risk stock at 0.

90β versus Texas Instruments Incorporated's 1. 11β — meaning TXN is approximately 23% more volatile than UMC relative to the S&P 500. On balance sheet safety, United Microelectronics Corporation (UMC) carries a lower debt/equity ratio of 16% 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 2. 3% for United Microelectronics Corporation (UMC). On earnings-per-share growth, the picture is similar: Texas Instruments Incorporated grew EPS 4. 8% year-over-year, compared to -10. 7% for United Microelectronics Corporation. 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 17. 6% for United Microelectronics Corporation — 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. 5% for UMC. 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, United Microelectronics Corporation (UMC) trades at 22.

2x forward P/E versus 37. 8x for Texas Instruments Incorporated — 15. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TXN: -11. 1% to $253. 71.

All stocks in this comparison pay dividends.

United Microelectronics Corporation (UMC) offers the highest yield at 3. 0%, versus 1. 9% for Texas Instruments Incorporated (TXN).

For long-horizon retirement investors, United Microelectronics Corporation (UMC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

90), 3. 0% yield, +895. 3% 10Y return). Both have compounded well over 10 years (UMC: +895. 3%, TXN: +471. 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.

In terms of investment character: UMC is a mid-cap income-oriented stock; TXN is a large-cap quality compounder stock. 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.