ATI vs Texas Instruments Which Is More Promising?

ATI Technologies Inc. and Texas Instruments Incorporated are two major players in the semiconductor industry, known for their innovative technology and strong financial performance. Both companies have a long history of delivering high-quality products to their customers and have a loyal investor base. While ATI focuses on graphics processing units (GPUs) for computers and gaming consoles, Texas Instruments specializes in a wide range of semiconductor products for various industries. Investors interested in the technology sector may find value in analyzing the stocks of these two companies.

ATI or Texas Instruments ?

When comparing ATI 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 ATI 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. ATI has a dividend yield of -%, while Texas Instruments has a dividend yield of 3.22%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. ATI reports a 5-year dividend growth of 0.00% year and a payout ratio of 4.25%. 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 ATI P/E ratio at 19.96 and Texas Instruments 's P/E ratio at 37.83. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. ATI P/B ratio is 4.19 while Texas Instruments 's P/B ratio is 10.88.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, ATI has seen a 5-year revenue growth of 1.12%, while Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with ATI's ROE at 26.03% 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 $57.95 for ATI and $205.34 for Texas Instruments . Over the past year, ATI's prices ranged from $38.04 to $68.92, with a yearly change of 81.18%. Texas Instruments 's prices fluctuated between $150.15 and $220.39, with a yearly change of 46.78%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.