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Analog Devices vs Texas Instruments
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Comparative Analysis
Texas Instruments (TXN) wins this head-to-head comparison against Analog Devices (ADI), primarily driven by its superior profitability and stronger return metrics. While both companies operate in the semiconductor space and have demonstrated revenue growth, TXN's higher net profit margin and return on equity present a more compelling investment case. ADI shows strong revenue growth, but TXN's efficiency in converting revenue to profit and its higher returns on capital give it the edge. The current technical and sentiment indicators are mixed for both, but TXN's fundamental profitability stands out.
Key Differentiator
The decisive factor favoring Texas Instruments (TXN) is its demonstrably superior profitability and capital efficiency. TXN's higher net profit margin and return on equity indicate a stronger business model that effectively converts sales into profits and generates greater returns for shareholders. While ADI exhibits strong revenue growth, TXN's ability to translate that growth into superior bottom-line performance and shareholder value is the critical differentiator.
Joint Outlook
The outlook for both Analog Devices (ADI) and Texas Instruments (TXN) is cautiously optimistic, contingent on broader semiconductor market trends and macroeconomic conditions. TXN's strong profitability and efficient operations provide a solid foundation, suggesting resilience even if growth moderates. Its outlook is supported by its higher dividend yield, appealing to income-focused investors. ADI's outlook hinges on its ability to maintain its impressive revenue growth and potentially close the profitability gap with TXN. Its higher analyst median target suggests potential for significant upside if execution remains strong and market conditions are favorable.
Price Analysis Comparison
Valuation Metrics
| Metric | ADI | TXN |
|---|---|---|
| P/E Ratio | 48.25 | 43.81 |
| Market Cap | 200.95B | 256.30B |
| Price/Sales | 14.18 | 13.51 |
| Price/Book | 5.87 | 14.59 |
| EV/EBITDA | 29.42 | 27.77 |
| Dividend Yield | 1.06% | 2.02% |
Analog Devices (ADI) trades at a P/E of 48.25, slightly higher than Texas Instruments' (TXN) P/E of 43.81. Both valuations are elevated, reflecting the growth expectations within the semiconductor sector. ADI's price is currently trading above its 50-day and 200-day moving averages ($382.89 and $365.56), suggesting some technical headwinds. TXN's price is also above its 50-day and 200-day moving averages ($272.31 and $253.25), but its lower P/E ratio offers a marginally more attractive entry point from a valuation perspective if growth expectations are met. ADI's 52-week range is 223.47 to 445.91, while TXN's is 152.73 to 334.03.
Profitability & Efficiency
| Metric | ADI | TXN |
|---|---|---|
| Rev. Growth (Qtly) | 39.60% | 22.80% |
| Profit Margin | 29.79% | 30.93% |
| Return on Equity | 12.23% | 35.18% |
| Return on Assets | 6.41% | 13.06% |
| Debt/Equity | 0.27 | 0.78 |
Texas Instruments (TXN) demonstrates superior profitability compared to Analog Devices (ADI). TXN's return on assets at 13.06% is considerably higher than ADI's 6.41%. These metrics indicate that TXN is more efficient at generating profits from its revenue and effectively utilizing its assets and shareholder equity.
Earnings Reality Check
ADI
Last 2 Qs: ADI beat estimates 2x out of 2. Fell 2x after beats. (Sell the news?)
TXN
Last 2 Qs: TXN beat estimates 2x out of 2. Fell 1x after beats. (Sell the news?)
Technical Indicators
| Indicator | ADI | TXN |
|---|---|---|
| RSI (14) | 53.85 | 51.43 |
| 50-Day MA | $382.89 | $272.31 |
| 200-Day MA | $365.56 | $253.25 |
Both Analog Devices (ADI) and Texas Instruments (TXN) are exhibiting mixed technical signals. ADI's RSI is 53.85 and its Stochastic is 37.36, indicating neutral momentum. Its price is below its 20-day EMA ($399.45), 50-day SMA ($382.89), and 200-day SMA ($365.56), suggesting a bearish short to medium-term trend. TXN's RSI is 51.43 and its Stochastic is 38.06, also pointing to neutral momentum. TXN's price is trading just below its 20-day EMA ($280.96) but above its 50-day SMA ($272.31) and 200-day SMA ($253.25), indicating a more constructive medium-term trend compared to ADI. Both stocks have MACD values that are positive but showing slowing momentum.
AI Analyst Sentiment
AI rating: CleaRank Financial AI's overall score for each asset, the same score shown on its own analysis page. It combines price trend and momentum with valuation, analyst and insider data where they exist.
ADI
AI Score: 76/100
TXN
AI Score: 55/100
Analog Devices (ADI) garners a more bullish analyst sentiment, with 6 Strong Buys and 24 Buys out of 34 analysts, and a median price target of $463.50, suggesting significant upside potential from its current price. Texas Instruments (TXN) has a more mixed analyst rating, with 2 Strong Buys and 17 Buys against 15 Holds and 2 Sells among 36 analysts, and a median price target of $340.00. While ADI has a higher median target, TXN's recent strong earnings beats and positive price reaction in April suggest underlying investor confidence despite the more cautious analyst consensus.
Note: While ADI has the higher AI score (Buy 76/100), the AI comparative analysis favors TXN (Hold 55/100) based on its overall trend structure, fundamentals, and risk-adjusted outlook.
Risk Stratification
| Metric | ADI | TXN |
|---|---|---|
| Beta (Volatility) | 1.23 | 1.34 |
| Sharpe Ratio | 0.91 | 0.55 |
For Analog Devices (ADI), a key risk lies in its lower profitability and return metrics compared to TXN, which could make it more vulnerable in a downturn or if competitive pressures intensify. Its current technicals also suggest potential for further downside if support levels break. For Texas Instruments (TXN), the primary risk stems from its mixed analyst ratings and the potential for a slowdown in its revenue growth, which has been strong but lower than ADI's reported growth. A shift in semiconductor demand or increased competition could impact its margins, although its current profitability provides a buffer.
Comparative ProTips
- Consider TXN for its superior profitability and capital efficiency, offering a more resilient profile.
- Monitor ADI's ability to sustain its revenue growth while improving its profit margins to justify its higher valuation.
Monte Carlo Projection (10yr)
Simulated growth of $10,000 in each asset, from its own historical volatility and trend. Statistical outcomes, not forecasts.
Actionable Trade Plans
Compare entry, exit, and risk management levels for both assets
Select Your Trade Bias
Risk Tolerance
Conservative
3%
Aggressive
Portfolio Value
$
✎
Position Size: $200 - $300 per asset
ADI
Current: $401.04
ENTRY ZONES
Conservative
$380.98
Aggressive
$401.04
RISK MANAGEMENT
STOP LOSS
$369.55
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5% from current
$421.09
+10% from current
$441.14
+15% from current
$461.19
TXN
Current: $280.65
ENTRY ZONES
Conservative
$266.62
Aggressive
$280.65
RISK MANAGEMENT
STOP LOSS
$258.62
MAX LOSS
-3%
Volatility-Adjusted Stop Loss
Calculated based on volatility and technical support levels.
Profit Targets (Based on Conservative)
+5% from current
$294.68
+10% from current
$308.71
+15% from current
$322.75
Calculate Your Trade
Disclaimer
This comparison involves assets with varying risk profiles. The content is for educational purposes only. The verdict weighs trend, valuation and risk together. Past correlation does not guarantee future lockstep movement. Trading involves risk of loss. Note: The AI favored TXN based on profitability metrics. This is valid for the specified timeframe only. While ADI currently shows the stronger short-term technical score (76 vs 55), the AI favors TXN on the factors above rather than today's technical setup.
Frequently Asked Questions
How do ADI and TXN compare on valuation?+
TXN trades at a slightly lower P/E ratio (43.81) than ADI (48.25).
Which stock offers better earnings performance?+
TXN has demonstrated more substantial earnings beats recently, with a notable 22.63% surprise in April 2026, and has shown positive price reactions to earnings more consistently than ADI.
What is the dividend yield for ADI and TXN?+
ADI offers a dividend yield of approximately 1.06%, while TXN provides a higher yield of about 2.02%.
Which is more volatile, ADI or TXN?+
They have been about equally volatile. Over the 30 days to October 15, 2026, ADI's annualized volatility was 27.0% and TXN's 28.7%, measured from daily closing prices.
Do ADI and TXN move together?+
Yes, closely: over roughly the past year to October 15, 2026, the correlation of their daily returns was +0.83 (+1 means they move in lockstep, 0 means no relationship). Holding both adds little diversification.
How far are ADI and TXN from their 52-week highs?+
As of October 15, 2026, ADI is 10.1% below its 52-week high of $445.91 and TXN is 16.0% below its high of $334.03.