IBM vs. TXN
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
| IBM | TXN | |
|---|---|---|
| YTD Return | 3.35% | -1.64% |
| 1Y Return | 21.15% | 3.38% |
| 5Y Return (Ann) | 4.41% | 11.24% |
| 10Y Return (Ann) | 1.76% | 17.81% |
| Sharpe Ratio | 1.07 | 0.02 |
| Daily Std Dev | 18.80% | 27.11% |
| Max Drawdown | -69.40% | -85.81% |
Fundamentals
| IBM | TXN | |
|---|---|---|
| Market Cap | $127.81B | $144.38B |
| EPS | $2.34 | $8.33 |
| PE Ratio | 59.96 | 19.09 |
| PEG Ratio | 1.28 | 2.99 |
| Revenue (TTM) | $60.52B | $18.82B |
| Gross Profit (TTM) | $32.69B | $13.77B |
| EBITDA (TTM) | $12.98B | $9.65B |
Correlation
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.
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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.
| TTM | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 ratio | Sortino ratio | Omega ratio | Calmar ratio | Ulcer Index | |
|---|---|---|---|---|---|
IBM International Business Machines Corporation | 1.07 | ||||
TXN Texas Instruments Incorporated | 0.02 |
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
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.