ASML vs Texas Instruments Which Is More Promising?

ASML and Texas Instruments are two leading companies in the semiconductor industry, both providing critical technologies for a wide range of applications. ASML specializes in manufacturing lithography equipment used in the production of advanced semiconductor chips, while Texas Instruments offers a diverse portfolio of analog and embedded processing products. Both companies have seen strong growth in recent years, driven by increasing demand for electronic devices and advancements in technology. Investors interested in the semiconductor sector may find opportunities in both ASML and Texas Instruments stocks.

ASML or Texas Instruments ?

When comparing ASML and Texas Instruments , different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between ASML and Texas Instruments .

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. ASML has a dividend yield of 0.89%, while Texas Instruments has a dividend yield of 2.75%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ASML reports a 5-year dividend growth of 29.40% year and a payout ratio of 35.02%. On the other hand, Texas Instruments reports a 5-year dividend growth of 13.80% year and a payout ratio of 95.39%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with ASML P/E ratio at 38.78 and Texas Instruments 's P/E ratio at 35.23. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ASML P/B ratio is 16.63 while Texas Instruments 's P/B ratio is 10.13.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ASML has seen a 5-year revenue growth of 1.71%, while Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ASML's ROE at 47.68% and Texas Instruments 's ROE at 29.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $716.22 for ASML and $188.30 for Texas Instruments . Over the past year, ASML's prices ranged from $645.45 to $1110.09, with a yearly change of 71.99%. Texas Instruments 's prices fluctuated between $155.46 and $220.39, with a yearly change of 41.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.