Texas Instruments (NASDAQ:TXN) and Lattice Semiconductor (NASDAQ:LSCC) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Insider & Institutional Ownership
83.1% of Texas Instruments shares are owned by institutional investors. 0.7% of Texas Instruments shares are owned by insiders. Comparatively, 1.2% of Lattice Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Texas Instruments and Lattice Semiconductor'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% |
Lattice Semiconductor | 11.31% | 16.60% | 8.89% |
Volatility & Risk
Texas Instruments has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Lattice Semiconductor has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Texas Instruments and Lattice Semiconductor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Texas Instruments | 4 | 10 | 14 | 0 | 2.36 |
Lattice Semiconductor | 0 | 1 | 10 | 0 | 2.91 |
Texas Instruments currently has a consensus price target of $166.5185, suggesting a potential downside of 6.28%. Lattice Semiconductor has a consensus price target of $47.6250, suggesting a potential downside of 7.13%. Given Texas Instruments' higher probable upside, analysts clearly believe Texas Instruments is more favorable than Lattice Semiconductor.
Valuation & Earnings
This table compares Texas Instruments and Lattice Semiconductor'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 | 11.37 | $5.02 billion | $5.24 | 33.91 |
Lattice Semiconductor | $404.09 million | 17.28 | $43.49 million | $0.45 | 113.96 |
Texas Instruments has higher revenue and earnings than Lattice Semiconductor. Texas Instruments is trading at a lower price-to-earnings ratio than Lattice Semiconductor, indicating that it is currently the more affordable of the two stocks.
Summary
Texas Instruments beats Lattice Semiconductor on 10 of the 14 factors compared between the two stocks.