ARM HOLDINGS PLC /UK vs TEXAS INSTRUMENTS INCORPORATED, two Semiconductors stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Texas Instruments manufactures billions of analog chips and sells them for money; Arm sells permission. The royalty model gives Arm a 97.9% gross margin against TI's 58%, and the manufacturing model gives TI the fatter operating line, 37.5% against 29.4%, once Arm's R&D spend is counted. TI converts its economics into shareholder cash, a 1.9% dividend and 1.4% free-cash yield at 48.8 times earnings; Arm converts almost nothing yet, 0.3% free cash at 393.6 times. One price pays for a machine already running, the other for a license on where computing goes next. The gap between 49 times and 394 times is the market's estimate of that destination's worth.
Comparison updated 2026-07-10.
| Metric | ARM | TXN |
|---|---|---|
| Price | $334.54 | $285.42 |
| Market cap | $357.6B | $260.9B |
| Sector | Semiconductors | Semiconductors |
| Stage | Growth | Growth |
| P/E | 393.6 | 48.8 |
| P/B | 43.16 | 15.55 |
| P/S | 72.69 | 14.15 |
| EV/EBITDA | 369.7 | 38.7 |
| Revenue growth | +23.3% | +14.9% |
| Gross margin | 97.8% | 58.0% |
| Operating margin | 29.4% | 37.5% |
| Net margin | 18.4% | 29.1% |
| Return on equity | 10.9% | 32.0% |
| Return on assets | 8.4% | 15.6% |
| Return on invested capital | 7.1% | 18.3% |
| FCF yield | 0.3% | 1.4% |
| Dividend yield | — | 1.9% |
| Debt / equity | 0.00 | 0.91 |
| Current ratio | 6.00 | 4.46 |
| Altman Z (solvency) | 7.76 | 9.22 |
| Piotroski F (quality) | 6 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.