STMicroelectronics vs Texas Instruments

STMicroelectronics and Texas Instruments are leading semiconductor companies that compete in the global market for electronic components. Both companies are renowned for their innovative products and technologies, making them attractive options for investors seeking exposure to the tech industry. While STMicroelectronics has a strong presence in the automotive and industrial sectors, Texas Instruments is known for its expertise in analog and embedded processing solutions. Investors should consider each company's financial performance, market position, and growth potential when evaluating their stocks.

STMicroelectronics or Texas Instruments ?

When comparing STMicroelectronics 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 STMicroelectronics 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. STMicroelectronics has a dividend yield of 1.12%, while Texas Instruments has a dividend yield of 2.6%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. STMicroelectronics reports a 5-year dividend growth of 0.00% year and a payout ratio of 7.88%. On the other hand, Texas Instruments reports a 5-year dividend growth of 13.80% year and a payout ratio of 88.01%.

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 STMicroelectronics P/E ratio at 7.99 and Texas Instruments 's P/E ratio at 34.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. STMicroelectronics P/B ratio is 1.42 while Texas Instruments 's P/B ratio is 10.59.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, STMicroelectronics has seen a 5-year revenue growth of 0.78%, while Texas Instruments 's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with STMicroelectronics's ROE at 18.30% and Texas Instruments 's ROE at 31.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $26.62 for STMicroelectronics and $198.90 for Texas Instruments . Over the past year, STMicroelectronics's prices ranged from $26.62 to $51.27, with a yearly change of 92.56%. Texas Instruments 's prices fluctuated between $139.48 and $214.66, with a yearly change of 53.90%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.