WallStSmart

Texas Instruments Incorporated (TXN)vsWaters Corporation (WAT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Texas Instruments Incorporated generates 459% more annual revenue ($17.68B vs $3.17B). TXN leads profitability with a 28.3% profit margin vs 20.3%. WAT appears more attractively valued with a PEG of 1.25. TXN earns a higher WallStSmart Score of 63/100 (C+).

TXN

Buy

63

out of 100

Grade: C+

Growth: 3.3Profit: 9.5Value: 7.3Quality: 7.8
Piotroski: 5/9Altman Z: 4.12

WAT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 7.3Quality: 6.8
Piotroski: 4/9Altman Z: 4.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

TXNSignificantly Overvalued (-425.2%)

Margin of Safety

-425.2%

Fair Value

$37.06

Current Price

$194.63

$157.57 premium

UndervaluedFair: $37.06Overvalued
WATSignificantly Overvalued (-349.9%)

Margin of Safety

-349.9%

Fair Value

$73.17

Current Price

$301.92

$228.75 premium

UndervaluedFair: $73.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

TXN6 strengths · Avg: 9.3/10
Return on EquityProfitability
30.1%10/10

Every $100 of equity generates 30 in profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

Altman Z-ScoreHealth
4.1210/10

Safe zone — low bankruptcy risk

Market CapQuality
$170.43B9/10

Large-cap with strong market position

Profit MarginProfitability
28.3%9/10

Keeps 28 of every $100 in revenue as profit

Free Cash FlowQuality
$1.33B8/10

Generating 1.3B in free cash flow

WAT4 strengths · Avg: 9.5/10
Operating MarginProfitability
33.8%10/10

Strong operational efficiency at 33.8%

Altman Z-ScoreHealth
4.9210/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

Profit MarginProfitability
20.3%9/10

Keeps 20 of every $100 in revenue as profit

Areas to Watch

TXN3 concerns · Avg: 3.3/10
P/E RatioValuation
34.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.8x4/10

Trading at 10.8x book value

EPS GrowthGrowth
-3.2%2/10

Earnings declined 3.2%

WAT2 concerns · Avg: 3.0/10
P/E RatioValuation
27.8x4/10

Moderate valuation

EPS GrowthGrowth
-3.1%2/10

Earnings declined 3.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : TXN

The strongest argument for TXN centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.3% and operating margin at 34.0%. Revenue growth of 10.4% demonstrates continued momentum.

Bull Case : WAT

The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bear Case : TXN

The primary concerns for TXN are P/E Ratio, Price/Book, EPS Growth.

Bear Case : WAT

The primary concerns for WAT are P/E Ratio, EPS Growth.

Key Dynamics to Monitor

WAT carries more volatility with a beta of 1.20 — expect wider price swings.

TXN is growing revenue faster at 10.4% — sustainability is the question.

TXN generates stronger free cash flow (1.3B), providing more financial flexibility.

Monitor SEMICONDUCTORS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TXN scores higher overall (63/100 vs 60/100), backed by strong 28.3% margins and 10.4% revenue growth. Both earn "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.

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.

Waters Corporation

HEALTHCARE · DIAGNOSTICS & RESEARCH · USA

Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.

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