TXN vs. ALLY

Last updated Jun 9, 2026

TXN (Texas Instruments Incorporated) and ALLY (Ally Financial Inc.) are both stocks. TXN operates in Semiconductors (Technology), while ALLY operates in Credit Services (Financial Services). Over the past 10 years, TXN returned 19.97%/yr vs 12.28%/yr for ALLY. At a 0.42 correlation, their price movements are largely independent.

Performance

TXN vs. ALLY - Performance Comparison

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

Returns By Period

In the year-to-date period, TXN achieves a 69.63% return, which is significantly higher than ALLY's -5.12% return. Over the past 10 years, TXN has outperformed ALLY with an annualized return of 19.97%, while ALLY has yielded a comparatively lower 12.28% annualized return.

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%

ALLY

• 1D: -0.91%
• 1M: -4.20%
• YTD: -5.12%
• 6M: 0.76%
• 1Y: 20.25%
• 3Y*: 18.71%
• 5Y*: -1.79%
• 10Y*: 12.28%

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

TXN vs. ALLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
TXN Texas Instruments Incorporated	69.63%	-4.47%	13.14%	6.41%	-9.86%	17.53%	31.70%	39.56%	-7.17%	46.75%
ALLY Ally Financial Inc.	-5.12%	29.92%	6.37%	49.22%	-46.89%	36.04%	20.56%	37.94%	-20.67%	56.05%

Correlation

The correlation between TXN and ALLY is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Apr 10, 2014	0.42

The correlation between TXN and ALLY shifts across timeframes, from 0.25 (1 year) to 0.44 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap TXN : $265.88B ALLY : $13.27B
EPS TXN : $5.88 ALLY : $4.45
PE Ratio TXN : 49.50 ALLY : 9.52
PS Ratio TXN : 14.41 ALLY : 0.85
PB Ratio TXN : 15.85 ALLY : 1.00
Total Revenue (TTM) TXN : $18.44B ALLY : $15.65B
Gross Profit (TTM) TXN : $10.57B ALLY : $7.65B
EBITDA (TTM) TXN : $8.21B ALLY : $2.77B

Return for Risk

TXN vs. ALLY — Risk / Return Rank

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

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

ALLY

ALLY Risk / Return Rank: 61
ALLY Sharpe Ratio Rank: 65
ALLY Sortino Ratio Rank: 58
ALLY Omega Ratio Rank: 57
ALLY Calmar Ratio Rank: 61
ALLY Martin Ratio Rank: 63

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.

TXN vs. ALLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Texas Instruments Incorporated (TXN) and Ally Financial Inc. (ALLY). 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.

	TXN	ALLY	Difference
Sharpe ratio: Return per unit of total volatility	1.40	0.69	+0.71
Sortino ratio: Return per unit of downside risk	2.19	1.15	+1.04
Omega ratio: Gain probability vs. loss probability	1.30	1.14	+0.16
Calmar ratio: Return relative to maximum drawdown	1.88	0.88	+1.00
Martin ratio: Return relative to average drawdown	3.94	2.19	+1.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TXN vs. ALLY - Sharpe Ratio Comparison

The current TXN Sharpe Ratio is 1.40, which is higher than the ALLY Sharpe Ratio of 0.69. The chart below compares the historical Sharpe Ratios of TXN and ALLY, 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

	TXN	ALLY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.40	0.69	+0.71
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.39	-0.05	+0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.31	+0.33
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	0.19	+0.11

Drawdowns

TXN vs. ALLY - Drawdown Comparison

The maximum TXN drawdown since its inception was -85.81%, which is greater than ALLY's maximum drawdown of -66.24%. Use the drawdown chart below to compare losses from any high point for TXN and ALLY.

Drawdown Indicators

	TXN	ALLY	Difference
Max Drawdown Largest peak-to-trough decline	-85.81%	-66.24%	-19.57%
Max Drawdown (1Y) Largest decline over 1 year	-29.57%	-23.04%	-6.53%
Max Drawdown (3Y) Largest decline over 3 years	-33.41%	-31.60%	-1.81%
Max Drawdown (5Y) Largest decline over 5 years	-33.41%	-58.08%	+24.67%
Max Drawdown (10Y) Largest decline over 10 years	-33.41%	-66.24%	+32.83%
Current Drawdown Current decline from peak	-10.46%	-11.00%	+0.54%
Average Drawdown Average peak-to-trough decline	-34.79%	-20.37%	-14.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	14.11%	9.28%	+4.83%

Volatility

TXN vs. ALLY - Volatility Comparison

Texas Instruments Incorporated (TXN) has a higher volatility of 13.93% compared to Ally Financial Inc. (ALLY) at 9.09%. This indicates that TXN's price experiences larger fluctuations and is considered to be riskier than ALLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TXN	ALLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.93%	9.09%	+4.84%
Volatility (6M) Calculated over the trailing 6-month period	30.98%	21.96%	+9.02%
Volatility (1Y) Calculated over the trailing 1-year period	39.96%	29.50%	+10.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.33%	38.52%	-6.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.13%	39.59%	-8.46%

Dividends

TXN vs. ALLY - Dividend Comparison

TXN's dividend yield for the trailing twelve months is around 1.93%, less than ALLY's 2.83% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALLY Ally Financial Inc.	2.83%	2.65%	3.33%	3.44%	4.91%	1.85%	2.13%	2.23%	2.47%	1.37%	0.84%	0.00%
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

TXN vs. ALLY - Profitability Comparison

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

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%.

ALLY - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Ally Financial Inc. reported a gross profit of 1.90B and revenue of 3.89B. Therefore, the gross margin over that period was 49.0%.

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%.

ALLY - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Ally Financial Inc. reported an operating income of 400.00M and revenue of 3.89B, resulting in an operating margin of 10.3%.

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%.

ALLY - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Ally Financial Inc. reported a net income of 319.00M and revenue of 3.89B, resulting in a net margin of 8.2%.

Frequently Asked Questions

Can I hold both TXN and ALLY in my portfolio?

TXN and ALLY have a correlation of 0.25, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, TXN or ALLY?

TXN has higher volatility (13.93%) compared to ALLY (9.09%). In terms of maximum drawdown, TXN dropped -85.81% vs ALLY's -66.24%.

Which has better risk-adjusted returns?

TXN currently has the higher Sharpe Ratio (1.40 vs 0.69), 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.