POWI vs. TXN

Last updated Jun 9, 2026

POWI (Power Integrations, Inc.) and TXN (Texas Instruments Incorporated) are both stocks. Both operate in the Semiconductors industry within the Technology sector. Over the past 10 years, POWI returned 12.30%/yr vs 19.97%/yr for TXN. A 0.55 correlation means they provide meaningful diversification when combined.

Performance

POWI vs. TXN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Power Integrations, Inc. (POWI) and Texas Instruments Incorporated (TXN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, POWI achieves a 117.25% return, which is significantly higher than TXN's 69.63% return. Over the past 10 years, POWI has underperformed TXN with an annualized return of 12.30%, while TXN has yielded a comparatively higher 19.97% annualized return.

POWI

• 1D: -0.44%
• 1M: 4.90%
• YTD: 117.25%
• 6M: 107.34%
• 1Y: 42.58%
• 3Y*: -4.73%
• 5Y*: 0.44%
• 10Y*: 12.30%

TXN

• 1D: 2.05%
• 1M: 1.08%
• YTD: 69.63%
• 6M: 62.64%
• 1Y: 55.42%
• 3Y*: 23.02%
• 5Y*: 12.46%
• 10Y*: 19.97%

*Multi-year figures are annualized to reflect compound growth (CAGR)

POWI vs. TXN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
POWI Power Integrations, Inc.	117.25%	-41.33%	-23.97%	15.56%	-22.09%	14.12%	66.77%	63.64%	-16.32%	9.26%
TXN Texas Instruments Incorporated	69.63%	-4.47%	13.14%	6.41%	-9.86%	17.53%	31.70%	39.56%	-7.17%	46.75%

Correlation

The correlation between POWI and TXN is 0.54, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.69
Correlation (10Y) Calculated over the trailing 10-year period	0.68
Correlation (All Time) Calculated using the full available price history since Dec 15, 1997	0.55

The correlation between POWI and TXN shifts across timeframes, from 0.54 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap POWI : $4.28B TXN : $265.88B
EPS POWI : $0.30 TXN : $5.88
PE Ratio POWI : 258.35 TXN : 49.50
PS Ratio POWI : 9.61 TXN : 14.41
PB Ratio POWI : 6.38 TXN : 15.85
Total Revenue (TTM) POWI : $446.28M TXN : $18.44B
Gross Profit (TTM) POWI : $240.35M TXN : $10.57B
EBITDA (TTM) POWI : $30.43M TXN : $8.21B

Return for Risk

POWI vs. TXN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

POWI

POWI Risk / Return Rank: 64
POWI Sharpe Ratio Rank: 67
POWI Sortino Ratio Rank: 67
POWI Omega Ratio Rank: 65
POWI Calmar Ratio Rank: 62
POWI Martin Ratio Rank: 60

TXN

TXN Risk / Return Rank: 77
TXN Sharpe Ratio Rank: 81
TXN Sortino Ratio Rank: 79
TXN Omega Ratio Rank: 81
TXN Calmar Ratio Rank: 74
TXN Martin Ratio Rank: 72

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

POWI vs. TXN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Power Integrations, Inc. (POWI) 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.

	POWI	TXN	Difference
Sharpe ratio: Return per unit of total volatility	0.75	1.40	-0.64
Sortino ratio: Return per unit of downside risk	1.51	2.19	-0.68
Omega ratio: Gain probability vs. loss probability	1.18	1.30	-0.12
Calmar ratio: Return relative to maximum drawdown	0.89	1.88	-0.99
Martin ratio: Return relative to average drawdown	1.77	3.94	-2.17
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

POWI vs. TXN - Sharpe Ratio Comparison

The current POWI Sharpe Ratio is 0.75, which is lower than the TXN Sharpe Ratio of 1.40. The chart below compares the historical Sharpe Ratios of POWI and TXN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	POWI	TXN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.75	1.40	-0.64
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.01	0.39	-0.38
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.64	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.30	-0.04

Drawdowns

POWI vs. TXN - Drawdown Comparison

The maximum POWI drawdown since its inception was -85.76%, roughly equal to the maximum TXN drawdown of -85.81%. Use the drawdown chart below to compare losses from any high point for POWI and TXN.

Drawdown Indicators

	POWI	TXN	Difference
Max Drawdown Largest peak-to-trough decline	-85.76%	-85.81%	+0.05%
Max Drawdown (1Y) Largest decline over 1 year	-47.83%	-29.57%	-18.26%
Max Drawdown (3Y) Largest decline over 3 years	-67.82%	-33.41%	-34.41%
Max Drawdown (5Y) Largest decline over 5 years	-70.68%	-33.41%	-37.27%
Max Drawdown (10Y) Largest decline over 10 years	-70.68%	-33.41%	-37.27%
Current Drawdown Current decline from peak	-26.32%	-10.46%	-15.86%
Average Drawdown Average peak-to-trough decline	-38.65%	-34.79%	-3.86%
Ulcer Index Depth and duration of drawdowns from previous peaks	24.15%	14.11%	+10.04%

Volatility

POWI vs. TXN - Volatility Comparison

Power Integrations, Inc. (POWI) has a higher volatility of 23.74% compared to Texas Instruments Incorporated (TXN) at 13.93%. This indicates that POWI's price experiences larger fluctuations and is considered to be riskier than TXN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	POWI	TXN	Difference
Volatility (1M) Calculated over the trailing 1-month period	23.74%	13.93%	+9.81%
Volatility (6M) Calculated over the trailing 6-month period	38.65%	30.98%	+7.67%
Volatility (1Y) Calculated over the trailing 1-year period	56.95%	39.96%	+16.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.44%	32.33%	+12.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.63%	31.13%	+10.50%

Dividends

POWI vs. TXN - Dividend Comparison

POWI's dividend yield for the trailing twelve months is around 1.11%, less than TXN's 1.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
POWI Power Integrations, Inc.	1.11%	2.36%	1.31%	0.94%	1.00%	0.58%	0.51%	0.71%	1.05%	0.76%	0.77%	0.99%
TXN Texas Instruments Incorporated	1.93%	3.17%	2.81%	2.94%	2.84%	2.23%	2.27%	2.50%	2.78%	2.03%	2.25%	2.55%

Financials

POWI vs. TXN - Profitability Comparison

The chart below illustrates the profitability comparison between Power Integrations, Inc. and Texas Instruments Incorporated over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

POWI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Power Integrations, Inc. reported a gross profit of 56.94M and revenue of 108.31M. Therefore, the gross margin over that period was 52.6%.

TXN - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Texas Instruments Incorporated reported a gross profit of 2.80B and revenue of 4.83B. Therefore, the gross margin over that period was 58.0%.

POWI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Power Integrations, Inc. reported an operating income of 1.45M and revenue of 108.31M, resulting in an operating margin of 1.3%.

TXN - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Texas Instruments Incorporated reported an operating income of 1.81B and revenue of 4.83B, resulting in an operating margin of 37.5%.

POWI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Power Integrations, Inc. reported a net income of 3.30M and revenue of 108.31M, resulting in a net margin of 3.1%.

TXN - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Texas Instruments Incorporated reported a net income of 1.55B and revenue of 4.83B, resulting in a net margin of 32.0%.

Frequently Asked Questions

Can I hold both POWI and TXN in my portfolio?

POWI and TXN have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, POWI or TXN?

POWI has higher volatility (23.74%) compared to TXN (13.93%). In terms of maximum drawdown, POWI dropped -85.76% vs TXN's -85.81%.

Which has better risk-adjusted returns?

TXN currently has the higher Sharpe Ratio (1.40 vs 0.75), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.