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IBM vs. TXN

Last updated Sep 30, 2023

Compare and contrast key facts about International Business Machines Corporation (IBM) and Texas Instruments Incorporated (TXN).

Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IBM or TXN.

Key characteristics


IBMTXN
YTD Return3.35%-1.64%
1Y Return21.15%3.38%
5Y Return (Ann)4.41%11.24%
10Y Return (Ann)1.76%17.81%
Sharpe Ratio1.070.02
Daily Std Dev18.80%27.11%
Max Drawdown-69.40%-85.81%

Fundamentals


IBMTXN
Market Cap$127.81B$144.38B
EPS$2.34$8.33
PE Ratio59.9619.09
PEG Ratio1.282.99
Revenue (TTM)$60.52B$18.82B
Gross Profit (TTM)$32.69B$13.77B
EBITDA (TTM)$12.98B$9.65B

Correlation

0.46
-1.001.00

The correlation between IBM and TXN is 0.46, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

IBM vs. TXN - Performance Comparison

In the year-to-date period, IBM achieves a 3.35% return, which is significantly higher than TXN's -1.64% return. Over the past 10 years, IBM has underperformed TXN with an annualized return of 1.76%, while TXN has yielded a comparatively higher 17.81% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.


-15.00%-10.00%-5.00%0.00%5.00%10.00%15.00%20.00%MayJuneJulyAugustSeptember
8.93%
-12.38%
IBM
TXN

Compare stocks, funds, or ETFs


International Business Machines Corporation

Texas Instruments Incorporated

IBM vs. TXN - Dividend Comparison

IBM's dividend yield for the trailing twelve months is around 4.72%, more than TXN's 3.12% yield.


TTM20222021202020192018201720162015201420132012
IBM
International Business Machines Corporation
4.72%4.85%5.16%5.91%5.77%6.89%5.07%4.53%5.16%3.89%2.96%2.64%
TXN
Texas Instruments Incorporated
3.12%2.90%2.35%2.44%2.77%3.17%2.37%2.69%3.14%2.93%3.16%3.11%

IBM vs. TXN - Risk-Adjusted Performance Comparison

This table presents a comparison of risk-adjusted performance metrics for International Business Machines Corporation (IBM) and Texas Instruments Incorporated (TXN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.


Sharpe ratioSortino ratioOmega ratioCalmar ratioUlcer Index
IBM
International Business Machines Corporation
1.07
TXN
Texas Instruments Incorporated
0.02

IBM vs. TXN - Sharpe Ratio Comparison

The current IBM Sharpe Ratio is 1.07, which is higher than the TXN Sharpe Ratio of 0.02. The chart below compares the 12-month rolling Sharpe Ratio of IBM and TXN.


Rolling 12-month Sharpe Ratio0.000.501.00MayJuneJulyAugustSeptember
1.07
0.02
IBM
TXN

IBM vs. TXN - Drawdown Comparison

The maximum IBM drawdown for the period was -17.61%, roughly equal to the maximum TXN drawdown of -17.02%. The drawdown chart below compares losses from any high point along the way for IBM and TXN


-15.00%-10.00%-5.00%0.00%MayJuneJulyAugustSeptember
-6.36%
-16.47%
IBM
TXN

IBM vs. TXN - Volatility Comparison

International Business Machines Corporation (IBM) and Texas Instruments Incorporated (TXN) have volatilities of 4.63% and 4.50%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.


3.00%4.00%5.00%6.00%7.00%8.00%9.00%MayJuneJulyAugustSeptember
4.63%
4.50%
IBM
TXN