Texas Instruments (TXN) vs. United Microelectronics (UMC) Head to Head Analysis
Texas Instruments (NASDAQ:TXN) and United Microelectronics (NYSE:UMC) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Texas Instruments pays an annual dividend of $3.08 per share and has a dividend yield of 2.9%. United Microelectronics pays an annual dividend of $0.08 per share and has a dividend yield of 4.0%. Texas Instruments pays out 56.8% of its earnings in the form of a dividend. Texas Instruments has increased its dividend for 15 consecutive years.
86.7% of Texas Instruments shares are held by institutional investors. Comparatively, 5.2% of United Microelectronics shares are held by institutional investors. 0.9% of Texas Instruments shares are held by insiders. Comparatively, 8.0% of United Microelectronics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Texas Instruments and United Microelectronics’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Texas Instruments||$15.78 billion||6.36||$5.58 billion||$5.42||19.74|
|United Microelectronics||$4.92 billion||1.01||$250.82 million||N/A||N/A|
Texas Instruments has higher revenue and earnings than United Microelectronics.
Risk and Volatility
Texas Instruments has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
This table compares Texas Instruments and United Microelectronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Texas Instruments and United Microelectronics, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Texas Instruments currently has a consensus target price of $110.36, suggesting a potential upside of 3.14%. United Microelectronics has a consensus target price of $2.19, suggesting a potential upside of 8.96%. Given United Microelectronics’ higher probable upside, analysts clearly believe United Microelectronics is more favorable than Texas Instruments.
Texas Instruments beats United Microelectronics on 11 of the 16 factors compared between the two stocks.
Texas Instruments Company Profile
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements in various levels using battery management solutions, portable components, power supply controls, point-of-load products, switches and interfaces, integrated protection devices, high-voltage products, and mobile lighting and display products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control for use in amplifier, data converter, interface product, motor drive, clock, and sensing product end-markets; and integrated analog and standard products, which are primarily for sale into personal electronics, industrial, and automotive markets. The Embedded Processing segment offers connected microcontrollers, such as microcontrollers, microcontrollers with integrated wireless capabilities, and stand-alone wireless connectivity solutions that are used in electronic equipment to sense, connect, log, and transfer data; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, principally industrial and automotive. The company also provides DLP products, primarily for use in projectors to create high-definition images; calculators; and application-specific integrated circuits. Texas Instruments Incorporated markets and sells its semiconductor products through direct sales and distributors, as well as online. The company was founded in 1930 and is headquartered in Dallas, Texas.
United Microelectronics Company Profile
United Microelectronics Corporation provides semiconductor wafer foundry solutions. The company operates through Wafer Fabrication and New Business segments. It provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. The company also engages in the research, development, and manufacture of products in the solar energy and light-emitting diode industries. It serves fabless design companies, and integrated device manufacturers. The company operates primarily in Taiwan, Singapore, China, Japan, Europe, and the United States. United Microelectronics Corporation was founded in 1980 and is headquartered in Hsinchu City, Taiwan.
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