International Business Machines (IBM)vsTexas Instruments Incorporated (TXN)
IBM
International Business Machines
$229.76
+0.06%
TECHNOLOGY · Cap: $217.40B
TXN
Texas Instruments Incorporated
$287.80
+0.90%
TECHNOLOGY · Cap: $261.92B
Smart Verdict
WallStSmart Research — data-driven comparison
International Business Machines generates 274% more annual revenue ($68.91B vs $18.44B). TXN leads profitability with a 29.1% profit margin vs 15.6%. TXN appears more attractively valued with a PEG of 1.61. TXN earns a higher WallStSmart Score of 72/100 (B).
IBM
Buy60
out of 100
Grade: C
TXN
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.8%
Fair Value
$178.18
Current Price
$229.76
$51.58 premium
Intrinsic value data unavailable for TXN.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Generating 4.8B 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
Expensive relative to growth rate
Weak financial health signals
Elevated debt levels
Expensive relative to growth rate
Trading at 15.6x book value
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : IBM
The strongest argument for IBM centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 15.6% and operating margin at 13.8%.
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 : IBM
The primary concerns for IBM are PEG Ratio, Piotroski F-Score, Debt/Equity. Debt-to-equity of 2.06 is elevated, increasing financial risk.
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
IBM profiles as a mature 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.
IBM generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
TXN scores higher overall (72/100 vs 60/100), backed by strong 29.1% margins and 18.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
International Business Machines
TECHNOLOGY · INFORMATION TECHNOLOGY SERVICES · USA
International Business Machines Corporation (IBM) is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries. The company began in 1911, founded in Endicott, New York, as the Computing-Tabulating-Recording Company (CTR) and was renamed International Business Machines in 1924. IBM is incorporated in New York. IBM produces and sells computer hardware, middleware and software, and provides hosting and consulting services in areas ranging from mainframe computers to nanotechnology. IBM is also a major research organization, holding the record for most annual U.S. patents generated by a business (as of 2020) for 28 consecutive years. Inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the SQL programming language, the UPC barcode, and dynamic random-access memory (DRAM). The IBM mainframe, exemplified by the System/360, was the dominant computing platform during the 1960s and 1970s.
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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