Cardinal Health Inc (CAH)vsTexas Instruments Incorporated (TXN)
CAH
Cardinal Health Inc
$183.65
-0.88%
HEALTHCARE · Cap: $43.39B
TXN
Texas Instruments Incorporated
$287.80
+0.90%
TECHNOLOGY · Cap: $261.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Cardinal Health Inc generates 1260% more annual revenue ($250.74B vs $18.44B). TXN leads profitability with a 29.1% profit margin vs 0.6%. CAH appears more attractively valued with a PEG of 1.25. TXN earns a higher WallStSmart Score of 72/100 (B).
CAH
Hold47
out of 100
Grade: D+
TXN
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+73.9%
Fair Value
$859.62
Current Price
$183.65
$675.97 discount
Intrinsic value data unavailable for TXN.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Generating 1.7B in free cash flow
Mega-cap, among the largest globally
Every $100 of equity generates 32 in profit
Strong operational efficiency at 37.8%
Safe zone — low bankruptcy risk
Keeps 29 of every $100 in revenue as profit
18.6% revenue growth
Areas to Watch
Moderate valuation
ROE of 0.0% — below average capital efficiency
0.6% margin — thin
Operating margin of 1.4%
Expensive relative to growth rate
Trading at 15.6x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CAH
The strongest argument for CAH centers on Altman Z-Score, Free Cash Flow. Revenue growth of 11.0% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bull Case : TXN
The strongest argument for TXN centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 29.1% and operating margin at 37.8%. Revenue growth of 18.6% demonstrates continued momentum.
Bear Case : CAH
The primary concerns for CAH are P/E Ratio, Return on Equity, Profit Margin. Thin 0.6% margins leave little buffer for downturns.
Bear Case : TXN
The primary concerns for TXN are PEG Ratio, Price/Book, P/E Ratio. A P/E of 49.2x leaves little room for execution misses.
Key Dynamics to Monitor
CAH profiles as a value stock while TXN is a growth play — different risk/reward profiles.
TXN carries more volatility with a beta of 1.30 — expect wider price swings.
TXN is growing revenue faster at 18.6% — sustainability is the question.
CAH generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
TXN scores higher overall (72/100 vs 47/100), backed by strong 29.1% margins and 18.6% revenue growth. CAH offers better value entry with a 73.9% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cardinal Health Inc
HEALTHCARE · MEDICAL DISTRIBUTION · USA
Cardinal Health, Inc. is an American multinational health care services company.
Visit Website →Texas Instruments Incorporated
TECHNOLOGY · SEMICONDUCTORS · USA
Texas Instruments Incorporated (TI) is an American technology company headquartered in Dallas, Texas, that designs and manufactures semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. It is one of the top 10 semiconductor companies worldwide based on sales volume.
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