International Business Machines Corporation (IBM) vs Texas Instruments Incorporated (TXN)
IBM leads on 12 of 16 compared metrics.
A side-by-side comparison of International Business Machines Corporation and Texas Instruments Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
IBM
International Business Machines Corporation
$272.24Technology
TXN
Texas Instruments Incorporated
$301.12Technology
Total return — IBM vs TXN
growth of $100 · last 30yIBM +1004.0%TXN +4434.9%TXN compounded faster
IBM TXN
IBM vs TXN: by the numbers
- •TXN is the larger company ($274.05B vs $255.87B market cap).
- •IBM trades at the lower earnings multiple (24.07 vs 51.47 P/E).
- •TXN converts more revenue to profit (29.11% vs 15.61% net margin).
- •TXN grew revenue faster over the past five years (3.64% vs -0.09% CAGR).
- •IBM pays the higher dividend yield (2.47% vs 1.87%).
Which is better, IBM or TXN?
Metric tally: IBM 12 · TXN 4It depends on what you're optimizing for:
ValueIBM(lower P/E)
GrowthTXN(faster 5Y revenue CAGR)
IncomeIBM(higher dividend yield)
QualityTXN(higher ROIC)
Valuation
| Metric | IBM | TXN |
|---|---|---|
| P/E ratio | 24.07● | 51.47 |
| Forward P/E | 20.33● | 33.83 |
| P/S ratio | 3.76● | 14.93 |
| P/B ratio | 7.86● | 16.40 |
| PEG ratio | 0.35● | 7.87 |
| EV / EBITDA | 19.54● | 34.60 |
| FCF yield | 5.05%● | 1.35% |
Profitability
| Metric | IBM | TXN |
|---|---|---|
| Gross margin | 58.97%● | 57.32% |
| Operating margin | 16.36% | 35.29%● |
| Net margin | 15.61% | 29.11%● |
| ROE | 32.61% | 31.99% |
| ROIC | 8.57% | 16.46%● |
Dividends
| Metric | IBM | TXN |
|---|---|---|
| Dividend yield | 2.47%● | 1.87% |
| Payout ratio | 59.24% | 103.12% |
Growth (annualized)
| Metric | IBM | TXN |
|---|---|---|
| Revenue CAGR (5Y) | -0.09% | 3.64%● |
| EPS CAGR (5Y) | 12.59%● | -2.07% |
| FCF CAGR (5Y) | -3.35%● | -10.12% |
| Total return CAGR (5Y) | 18.04%● | 12.95% |
Frequently asked
- Which is better, IBM or TXN?
- It depends on your goal. value: IBM (lower P/E); growth: TXN (faster 5Y revenue CAGR); income: IBM (higher dividend yield); quality: TXN (higher ROIC). Across all compared metrics, IBM leads 12 to 4.
- Is IBM or TXN cheaper?
- On trailing earnings, IBM is cheaper: IBM trades at a 24.07 P/E and TXN at 51.47.
- Which has grown faster, IBM or TXN?
- Over the past five years, TXN grew revenue faster — IBM at a -0.09% CAGR versus TXN at 3.64%.
- Does IBM or TXN pay a bigger dividend?
- IBM yields 2.47% and TXN yields 1.87% based on trailing dividends and the latest price.
- Is IBM or TXN more profitable?
- TXN runs the higher net margin — IBM at 15.61% versus TXN at 29.11%.
- Which has been the better investment, IBM or TXN?
- Over the past 10-year, TXN delivered the higher annualized total return — IBM at 11.01% versus TXN at 20.37%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
International Business Machines P/E ratioTexas Instruments P/E ratioInternational Business Machines dividend yieldTexas Instruments dividend yieldInternational Business Machines ROETexas Instruments ROEInternational Business Machines operating marginTexas Instruments operating marginInternational Business Machines revenue growthTexas Instruments revenue growthInternational Business Machines free cash flowTexas Instruments free cash flow
International Business Machines & 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 June 13, 2026.