Texas Instruments (NASDAQ:TXN) and DSP Group (NASDAQ:DSPG) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Risk & Volatility
Texas Instruments has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, DSP Group has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Insider & Institutional Ownership
83.1% of Texas Instruments shares are held by institutional investors. Comparatively, 85.0% of DSP Group shares are held by institutional investors. 0.7% of Texas Instruments shares are held by company insiders. Comparatively, 8.1% of DSP Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and price targets for Texas Instruments and DSP Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Texas Instruments | 4 | 10 | 14 | 0 | 2.36 |
DSP Group | 0 | 0 | 5 | 0 | 3.00 |
Texas Instruments presently has a consensus target price of $166.5185, indicating a potential downside of 6.87%. DSP Group has a consensus target price of $21.75, indicating a potential upside of 34.67%. Given DSP Group's stronger consensus rating and higher probable upside, analysts clearly believe DSP Group is more favorable than Texas Instruments.
Profitability
This table compares Texas Instruments and DSP Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Texas Instruments | 36.24% | 61.05% | 28.06% |
DSP Group | -4.93% | 2.30% | 1.70% |
Valuation and Earnings
This table compares Texas Instruments and DSP Group's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Texas Instruments | $14.38 billion | 11.46 | $5.02 billion | $5.24 | 34.17 |
DSP Group | $117.61 million | 3.24 | $-1,190,000.00 | $0.29 | 55.69 |
Texas Instruments has higher revenue and earnings than DSP Group. Texas Instruments is trading at a lower price-to-earnings ratio than DSP Group, indicating that it is currently the more affordable of the two stocks.
Summary
Texas Instruments beats DSP Group on 10 of the 14 factors compared between the two stocks.