Applied Materials, Inc. (AMAT) vs Texas Instruments Incorporated (TXN)
A side-by-side comparison of Applied Materials, Inc. and Texas Instruments Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 31, 2026. Differences are shown without an overall score or investment verdict.
AMAT
Applied Materials, Inc.
$507.67TechnologyDelayed quote: Jul 31, 2026, 4:00 PM EDT
TXN
Texas Instruments Incorporated
$275.74TechnologyDelayed quote: Jul 31, 2026, 4:00 PM EDT
Total return — AMAT vs TXN
growth of $100 · dividends reinvested · last 30yAMAT +22861.8%TXN +8511.8%AMAT compounded faster
AMAT TXN
AMAT vs TXN: by the numbers
- •AMAT is the larger company ($403.07B vs $251.82B market cap).
- •TXN trades at the lower trailing earnings multiple (42.36 vs 47.16 P/E), one valuation lens rather than an overall verdict.
- •TXN converts more revenue to profit (31.11% vs 29.31% net margin).
- •AMAT grew revenue faster over the past five years (9.33% vs 3.02% CAGR).
- •TXN pays the higher dividend yield (2.02% vs 0.38%).
Metrics side by side
Valuation
| Metric | AMAT | TXN |
|---|---|---|
| P/E ratio | 47.16 | 42.36 |
| Forward P/E | 40.85 | 33.05 |
| P/S ratio | 13.81 | 13.18 |
| P/B ratio | 16.77 | 14.24 |
| PEG ratio | 76.84 | 7.94 |
| EV / EBITDA | 44.32 | 30.02 |
| FCF yield | 1.49% | 2.09% |
Profitability
| Metric | AMAT | TXN |
|---|---|---|
| Gross margin | 48.96% | 58.33% |
| Operating margin | 29.51% | 37.29% |
| Net margin | 29.31% | 31.11% |
| ROE | 35.58% | 33.61% |
| ROIC | 21.96% | 16.46% |
Dividends
| Metric | AMAT | TXN |
|---|---|---|
| Dividend yield | 0.38% | 2.02% |
| Payout ratio | 21.93% | 103.12% |
Growth (annualized)
| Metric | AMAT | TXN |
|---|---|---|
| Revenue CAGR (5Y) | 9.33% | 3.02% |
| EPS CAGR (5Y) | 17.13% | -2.07% |
| FCF CAGR (5Y) | 9.02% | -3.76% |
| Total return CAGR (5Y) | 31.08% | 10.86% |
Frequently asked
- Which has the lower trailing P/E, AMAT or TXN?
- TXN has the lower trailing P/E: AMAT trades at 47.16 and TXN at 42.36. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, AMAT or TXN?
- Over the past five years, AMAT grew revenue faster — AMAT at a 9.33% CAGR versus TXN at 3.02%.
- Does AMAT or TXN pay a bigger dividend?
- AMAT yields 0.38% and TXN yields 2.02% based on trailing dividends and the latest price.
- Is AMAT or TXN more profitable?
- TXN runs the higher net margin — AMAT at 29.31% versus TXN at 31.11%.
- How have AMAT and TXN total returns compared?
- Over the past 10 years, AMAT delivered 36.22% and TXN delivered 17.97% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Applied Materials P/E ratioTexas Instruments P/E ratioApplied Materials dividend yieldTexas Instruments dividend yieldApplied Materials ROETexas Instruments ROEApplied Materials operating marginTexas Instruments operating marginApplied Materials revenue growthTexas Instruments revenue growthApplied Materials free cash flowTexas Instruments free cash flow
Applied Materials & Texas Instruments appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 31, 2026.