GlobalFoundries (NASDAQ:GFS) and Texas Instruments (NASDAQ:TXN) Head to Head Survey

Texas Instruments (NASDAQ:TXN) and GlobalFoundries (NASDAQ:GFS) are both large-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Risk and Volatility

Texas Instruments has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, GlobalFoundries has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.

Valuation and Earnings

This table compares Texas Instruments and GlobalFoundries”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	$15.64 billion	11.68	$4.80 billion	$5.19	38.68
GlobalFoundries	$6.75 billion	3.39	-$265.00 million	($0.48)	-86.50

Texas Instruments has higher revenue and earnings than GlobalFoundries. GlobalFoundries is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Texas Instruments and GlobalFoundries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	30.68%	28.08%	13.64%
GlobalFoundries	-3.93%	6.05%	3.82%

Institutional and Insider Ownership

85.0% of Texas Instruments shares are owned by institutional investors. 0.7% of Texas Instruments shares are owned 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Texas Instruments and GlobalFoundries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	2	12	8	0	2.27
GlobalFoundries	0	7	7	0	2.50

Texas Instruments currently has a consensus price target of $209.20, indicating a potential upside of 4.21%. GlobalFoundries has a consensus price target of $49.64, indicating a potential upside of 19.56%. Given GlobalFoundries’ stronger consensus rating and higher possible upside, analysts clearly believe GlobalFoundries is more favorable than Texas Instruments.

Summary

Texas Instruments beats GlobalFoundries on 11 of the 14 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.