Head to Head Comparison: ChipMOS TECHNOLOGIES (NASDAQ:IMOS) & Texas Instruments (NASDAQ:TXN)

ChipMOS TECHNOLOGIES (NASDAQ:IMOSGet Free Report) and Texas Instruments (NASDAQ:TXNGet Free Report) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Institutional & Insider Ownership

7.2% of ChipMOS TECHNOLOGIES shares are held by institutional investors. Comparatively, 83.4% of Texas Instruments shares are held by institutional investors. 22.7% of ChipMOS TECHNOLOGIES shares are held by insiders. Comparatively, 0.5% of Texas Instruments shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ChipMOS TECHNOLOGIES and Texas Instruments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChipMOS TECHNOLOGIES 7.70% 6.35% 3.43%
Texas Instruments 37.16% 39.96% 20.83%

Risk and Volatility

ChipMOS TECHNOLOGIES has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, Texas Instruments has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares ChipMOS TECHNOLOGIES and Texas Instruments’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChipMOS TECHNOLOGIES $789.40 million 1.21 $111.93 million $1.38 19.05
Texas Instruments $17.52 billion 8.21 $6.51 billion $7.06 22.43

Texas Instruments has higher revenue and earnings than ChipMOS TECHNOLOGIES. ChipMOS TECHNOLOGIES is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.

Dividends

ChipMOS TECHNOLOGIES pays an annual dividend of $1.15 per share and has a dividend yield of 4.4%. Texas Instruments pays an annual dividend of $5.20 per share and has a dividend yield of 3.3%. ChipMOS TECHNOLOGIES pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Texas Instruments pays out 73.7% of its earnings in the form of a dividend. Texas Instruments has increased its dividend for 20 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations for ChipMOS TECHNOLOGIES and Texas Instruments, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChipMOS TECHNOLOGIES 0 0 0 0 N/A
Texas Instruments 3 8 6 0 2.18

Texas Instruments has a consensus price target of $173.95, suggesting a potential upside of 9.84%. Given Texas Instruments’ higher possible upside, analysts clearly believe Texas Instruments is more favorable than ChipMOS TECHNOLOGIES.

Summary

Texas Instruments beats ChipMOS TECHNOLOGIES on 14 of the 16 factors compared between the two stocks.

About ChipMOS TECHNOLOGIES

(Get Free Report)

ChipMOS TECHNOLOGIES INC. researches, develops, manufactures, and sells high-integration and high-precision integrated circuits, and related assembly and testing services in the People's Republic of China, Japan, Singapore, and internationally. It operates through Testing; Assembly; Testing and Assembly for LCD, OLED and Other Display Panel Driver Semiconductors; Bumping; and Others segments. The company provides a range of back-end assembly and testing services, including engineering test, wafer probing, and final test of memory and logic/mixed-signal semiconductors, as well as leadframe-based and organic substrate-based package assembly services for memory and logic/mixed-signal semiconductors; and gold bumping, reel to reel assembly, and test services for LCD, OLED, and other panel display driver semiconductors. Its semiconductors are used in personal computers; graphics applications, such as game consoles; communications equipment; mobile products comprising cellular handsets, tablets, and consumer electronic products; and automotive/industry and display applications, such as display panels. ChipMOS TECHNOLOGIES INC. was incorporated in 1997 and is headquartered in Hsinchu, Taiwan.

About Texas Instruments

(Get Free Report)

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. It operates in two segments, Analog and Embedded Processing. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment also provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. The company also provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. It markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

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