Arm Holdings plc American Depositary Shares (ARM) vs Texas Instruments Incorporated (TXN)

A side-by-side comparison of Arm Holdings plc American Depositary Shares and Texas Instruments Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 30, 2026. Differences are shown without an overall score or investment verdict.

Compare

Total returnARM vs TXN

growth of $100 · dividends reinvested · last 3y
ARM +270.2%TXN +77.4%ARM compounded faster
200400600Start $100202420252026$370$177
ARM TXN

ARM vs TXN: by the numbers

  • TXN is the larger company ($255.46B vs $249.28B market cap).
  • TXN trades at the lower trailing earnings multiple (41.23 vs 267.73 P/E), one valuation lens rather than an overall verdict.
  • TXN converts more revenue to profit (31.11% vs 18.37% net margin).
  • ARM grew revenue faster over the past five years (19.41% vs 3.02% CAGR).
  • TXN pays a dividend (2.07% yield), while ARM has no payments in the available dividend history.

Metrics side by side

Valuation

MetricARMTXN
P/E ratio267.7341.23
Forward P/E128.3032.17
P/S ratio48.8212.83
P/B ratio28.9913.86
PEG ratio13.357.94
EV / EBITDA206.8629.24
FCF yield0.40%2.15%

Profitability

MetricARMTXN
Gross margin94.63%58.33%
Operating margin18.31%37.29%
Net margin18.37%31.11%
ROE10.91%33.61%
ROIC7.29%16.46%

Dividends

MetricARMTXN
Dividend yieldN/A2.07%
Payout ratioN/A103.12%

Growth (annualized)

MetricARMTXN
Revenue CAGR (5Y)19.41%3.02%
EPS CAGR (5Y)17.47%-2.07%
FCF CAGR (5Y)-1.73%-3.76%
Total return CAGR (5Y)N/A10.37%

Frequently asked

Which has the lower trailing P/E, ARM or TXN?
TXN has the lower trailing P/E: ARM trades at 267.73 and TXN at 41.23. P/E is one valuation measure and does not by itself establish which business is cheaper.
Which has grown faster, ARM or TXN?
Over the past five years, ARM grew revenue faster — ARM at a 19.41% CAGR versus TXN at 3.02%.
Does ARM or TXN pay a bigger dividend?
TXN pays a dividend (2.07% yield), while ARM has no payments in the available dividend history.
Is ARM or TXN more profitable?
TXN runs the higher net margin — ARM at 18.37% versus TXN at 31.11%.

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 30, 2026.