Which has the lower trailing P/E, IBM or TXN?

IBM has the lower trailing P/E: IBM trades at 20.04 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, IBM or TXN?

Over the past five years, TXN grew revenue faster — IBM at a 1.13% CAGR versus TXN at 3.02%.

Does IBM or TXN pay a bigger dividend?

IBM yields 2.97% and TXN yields 2.07% based on trailing dividends and the latest price.

Is IBM or TXN more profitable?

TXN runs the higher net margin — IBM at 15.52% versus TXN at 31.11%.

How have IBM and TXN total returns compared?

Over the past 10 years, IBM delivered 8.41% and TXN delivered 17.66% annualized total return. Past performance doesn't predict future results.

International Business Machines Corporation (IBM) vs Texas Instruments Incorporated (TXN)

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 July 30, 2026. Differences are shown without an overall score or investment verdict.

IBM

International Business Machines Corporation

$208.45B

$221.25TechnologyDelayed quote: Jul 30, 2026, 10:15 AM EDT

TXN

Texas Instruments Incorporated

$256.67B

$281.05TechnologyDelayed quote: Jul 30, 2026, 10:15 AM EDT

Total return — IBM vs TXN

growth of $100 · dividends reinvested · last 30y

IBM +1721.5%TXN +8285.5%TXN compounded faster

IBM TXN

IBM vs TXN: by the numbers

•TXN is the larger company ($256.67B vs $208.45B market cap).
•IBM trades at the lower trailing earnings multiple (20.04 vs 41.23 P/E), one valuation lens rather than an overall verdict.
•TXN converts more revenue to profit (31.11% vs 15.52% net margin).
•TXN grew revenue faster over the past five years (3.02% vs 1.13% CAGR).
•IBM pays the higher dividend yield (2.97% vs 2.07%).

Metrics side by side

Valuation

Metric	IBM	TXN
P/E ratio	20.04	41.23
Forward P/E	18.36	32.17
P/S ratio	3.12	12.83
P/B ratio	6.26	13.86
PEG ratio	0.35	7.94
EV / EBITDA	16.91	29.24
FCF yield	6.76%	2.15%

Profitability

Metric	IBM	TXN
Gross margin	58.43%	58.33%
Operating margin	17.86%	37.29%
Net margin	15.52%	31.11%
ROE	31.13%	33.61%
ROIC	10.37%	16.46%

Dividends

Metric	IBM	TXN
Dividend yield	2.97%	2.07%
Payout ratio	59.24%	103.12%

Growth (annualized)

Metric	IBM	TXN
Revenue CAGR (5Y)	1.13%	3.02%
EPS CAGR (5Y)	12.59%	-2.07%
FCF CAGR (5Y)	-5.01%	-3.76%
Total return CAGR (5Y)	15.24%	10.37%

Frequently asked

Which has the lower trailing P/E, IBM or TXN?: IBM has the lower trailing P/E: IBM trades at 20.04 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, IBM or TXN?: Over the past five years, TXN grew revenue faster — IBM at a 1.13% CAGR versus TXN at 3.02%.
Does IBM or TXN pay a bigger dividend?: IBM yields 2.97% and TXN yields 2.07% based on trailing dividends and the latest price.
Is IBM or TXN more profitable?: TXN runs the higher net margin — IBM at 15.52% versus TXN at 31.11%.
How have IBM and TXN total returns compared?: Over the past 10 years, IBM delivered 8.41% and TXN delivered 17.66% annualized total return. Past performance doesn't predict future results.

Go deeper

Full IBM analysis Full TXN analysis Interactive comparison tool

Dig into the metrics

International Business Machines P/E ratio Texas Instruments P/E ratio International Business Machines dividend yield Texas Instruments dividend yield International Business Machines ROE Texas Instruments ROE International Business Machines operating margin Texas Instruments operating margin International Business Machines revenue growth Texas Instruments revenue growth International Business Machines free cash flow Texas Instruments free cash flow

International Business Machines & Texas Instruments appear in these rankings

Highest Dividend Yield Stocks 25+ Year Dividend Growers Highest ROE Stocks Highest Operating Margin Stocks

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.