Head-To-Head Contrast: Texas Instruments (TXN) vs. CEVA (CEVA)
Texas Instruments (NASDAQ: TXN) and CEVA (NASDAQ:CEVA) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Volatility & Risk
Texas Instruments has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, CEVA has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.
84.0% of Texas Instruments shares are owned by institutional investors. Comparatively, 86.5% of CEVA shares are owned by institutional investors. 1.0% of Texas Instruments shares are owned by company insiders. Comparatively, 3.9% of CEVA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Texas Instruments and CEVA’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Texas Instruments||$13.37 billion||7.23||$3.60 billion||$4.28||22.90|
|CEVA||$72.65 million||13.64||$13.10 million||$0.86||52.44|
Texas Instruments has higher revenue and earnings than CEVA. Texas Instruments is trading at a lower price-to-earnings ratio than CEVA, indicating that it is currently the more affordable of the two stocks.
This table compares Texas Instruments and CEVA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Texas Instruments and CEVA, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Texas Instruments currently has a consensus price target of $93.58, suggesting a potential downside of 4.53%. CEVA has a consensus price target of $46.50, suggesting a potential upside of 3.10%. Given CEVA’s stronger consensus rating and higher possible upside, analysts clearly believe CEVA is more favorable than Texas Instruments.
Texas Instruments pays an annual dividend of $2.48 per share and has a dividend yield of 2.5%. CEVA does not pay a dividend. Texas Instruments pays out 57.9% of its earnings in the form of a dividend.
Texas Instruments beats CEVA on 9 of the 16 factors compared between the two stocks.
About Texas Instruments
Texas Instruments Incorporated designs, makes and sells semiconductors to electronics designers and manufacturers across the world. The Company operates through two segments: Analog and Embedded Processing. As of December 31, 2016, the Company had design, manufacturing or sales operations in more than 30 countries. The Company’s Analog segment’s product line includes High Volume Analog & Logic (HVAL), Power Management (Power), High Performance Analog (HPA) and Silicon Valley Analog (SVA). HVAL products support applications, such as automotive safety devices, touchscreen controllers, low-voltage motor drivers and integrated motor controllers. The Company’s Embedded Processing segment’s product line includes Processor, Microcontrollers and Connectivity. Processor products include digital signal processors (DSPs) and applications processors. DSPs perform mathematical computations to process digital data.
CEVA, Inc. (CEVA) is a licensor of signal processing intellectual property (IP). The Company partners with semiconductor companies and original equipment manufacturers (OEMs) to create connected devices for a range of end markets, including mobile, consumer, automotive, industrial and Internet of things (IoT). The Company operates in the segment of licensing of intellectual property to semiconductor companies and electronic equipment manufacturers. CEVA addresses the requirements of the mobile, consumer, automotive, industrial and IoT markets by designing and licensing a range of application-specific signal processing platforms, which enable the design of solutions for developing a range of applications, including communications and connectivity, audio and voice, imaging and vision, and storage.
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