QUALCOMM vs Texas Instruments Which Is More Profitable?

Qualcomm and Texas Instruments are two leading semiconductor companies in the technology industry. Both companies are known for their innovative products and strong presence in the global market. Qualcomm is recognized for its strong focus on mobile technology and telecommunications, while Texas Instruments is known for its diverse portfolio of analog and digital chips. Investors closely monitor the stocks of these companies as they both play a significant role in shaping the future of technology. In this comparison, we will delve into the key financial metrics and performance of Qualcomm and Texas Instruments stocks to determine which may be a better investment option.

QUALCOMM or Texas Instruments ?

When comparing QUALCOMM 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 QUALCOMM 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. QUALCOMM has a dividend yield of 2.12%, while Texas Instruments has a dividend yield of 2.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. QUALCOMM reports a 5-year dividend growth of 5.33% year and a payout ratio of 36.35%. 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 QUALCOMM P/E ratio at 17.40 and Texas Instruments 's P/E ratio at 35.25. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. QUALCOMM P/B ratio is 6.72 while Texas Instruments 's P/B ratio is 10.14.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, QUALCOMM has seen a 5-year revenue growth of 1.06%, while Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with QUALCOMM 's ROE at 41.20% 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 $156.92 for QUALCOMM and $189.60 for Texas Instruments . Over the past year, QUALCOMM 's prices ranged from $134.94 to $230.63, with a yearly change of 70.91%. 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.