TXN vs. IBM
TXN (Texas Instruments Incorporated) and IBM (International Business Machines Corporation) are both stocks. Both are in the Technology sector — TXN in Semiconductors, IBM in Information Technology Services. Over the past 10 years, TXN returned 20.32%/yr vs 11.27%/yr for IBM. At a 0.44 correlation, their price movements are largely independent.
Performance
TXN vs. IBM - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, TXN achieves a 81.62% return, which is significantly higher than IBM's -1.65% return. Over the past 10 years, TXN has outperformed IBM with an annualized return of 20.32%, while IBM has yielded a comparatively lower 11.27% annualized return.
TXN
- 1D
- 0.95%
- 1M
- 4.83%
- 6M
- 65.56%
- YTD
- 81.62%
- 1Y
- 44.72%
- 3Y*
- 23.89%
- 5Y*
- 13.54%
- 10Y*
- 20.32%
IBM
- 1D
- -2.62%
- 1M
- 4.62%
- 6M
- -4.24%
- YTD
- -1.65%
- 1Y
- 3.99%
- 3Y*
- 33.07%
- 5Y*
- 20.91%
- 10Y*
- 11.27%
TXN vs. IBM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TXN Texas Instruments Incorporated | 81.62% | -4.47% | 13.14% | 6.41% | -9.86% | 17.53% | 31.70% | 39.56% | -7.17% | 46.75% |
IBM International Business Machines Corporation | -1.65% | 38.23% | 39.27% | 21.85% | 10.64% | 16.65% | -1.16% | 23.58% | -22.56% | -3.99% |
Correlation
The correlation between TXN and IBM is -0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.02 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.30 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.38 |
Correlation (All Time) Calculated using the full available price history since Jun 1, 1972 | 0.44 |
The correlation between TXN and IBM shifts across timeframes, from -0.02 (1 year) to 0.44 (all time), reflecting how their relationship changes across market environments.
Fundamentals
TXN:
$283.46B
IBM:
$270.27B
TXN:
$5.87
IBM:
$11.31
TXN:
53.02
IBM:
25.43
TXN:
15.43
IBM:
3.97
TXN:
16.97
IBM:
8.30
TXN:
$18.44B
IBM:
$68.91B
TXN:
$10.57B
IBM:
$40.64B
TXN:
$8.21B
IBM:
$15.71B
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
TXN vs. IBM — Risk / Return Rank
TXN
IBM
TXN vs. IBM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Texas Instruments Incorporated (TXN) and International Business Machines Corporation (IBM). 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| TXN | IBM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.00 | ||
| Sortino ratioReturn per unit of downside risk | +1.36 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.05 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 0.08 | +1.47 |
| Martin ratioReturn relative to average drawdown | 3.20 | 0.18 | +3.02 |
Loading charts...
Drawdowns
TXN vs. IBM - Drawdown Comparison
The maximum TXN drawdown since its inception was -85.81%, which is greater than IBM's maximum drawdown of -69.40%. Use the drawdown chart below to compare losses from any high point for TXN and IBM.
Loading charts...
Drawdown Indicators
| TXN | IBM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -85.81% | -69.40% | -16.41% |
Max Drawdown (1Y)Largest decline over 1 year | -29.57% | -30.96% | +1.39% |
Max Drawdown (3Y)Largest decline over 3 years | -33.41% | -30.96% | -2.45% |
Max Drawdown (5Y)Largest decline over 5 years | -33.41% | -30.96% | -2.45% |
Max Drawdown (10Y)Largest decline over 10 years | -33.41% | -40.59% | +7.18% |
Current DrawdownCurrent decline from peak | -6.27% | -12.66% | +6.39% |
Average DrawdownAverage peak-to-trough decline | -34.75% | -20.12% | -14.63% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.36% | 14.69% | -0.33% |
Volatility
TXN vs. IBM - Volatility Comparison
Texas Instruments Incorporated (TXN) has a higher volatility of 18.65% compared to International Business Machines Corporation (IBM) at 12.14%. This indicates that TXN's price experiences larger fluctuations and is considered to be riskier than IBM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| TXN | IBM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 18.65% | 12.14% | +6.51% |
Volatility (6M)Calculated over the trailing 6-month period | 34.58% | 36.21% | -1.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.30% | 40.82% | +2.48% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 33.27% | 27.52% | +5.75% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.56% | 26.75% | +4.81% |
Dividends
TXN vs. IBM - Dividend Comparison
TXN's dividend yield for the trailing twelve months is around 1.80%, less than IBM's 2.34% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IBM International Business Machines Corporation | 2.34% | 2.27% | 3.03% | 4.05% | 4.68% | 4.74% | 5.17% | 4.80% | 5.46% | 3.85% | 3.31% | 3.63% |
TXN Texas Instruments Incorporated | 1.80% | 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. IBM - Financials Comparison
This section allows you to compare key financial metrics between Texas Instruments Incorporated and International Business Machines Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
TXN vs. IBM - Profitability Comparison
TXN - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 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%.
IBM - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jul 2026, International Business Machines Corporation reported a gross profit of 8.95B and revenue of 15.92B. Therefore, the gross margin over that period was 56.2%.
TXN - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, Texas Instruments Incorporated reported an operating income of 1.81B and revenue of 4.83B, resulting in an operating margin of 37.5%.
IBM - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jul 2026, International Business Machines Corporation reported an operating income of 1.22B and revenue of 15.92B, resulting in an operating margin of 7.6%.
TXN - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, Texas Instruments Incorporated reported a net income of 1.55B and revenue of 4.83B, resulting in a net margin of 32.0%.
IBM - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jul 2026, International Business Machines Corporation reported a net income of 1.22B and revenue of 15.92B, resulting in a net margin of 7.6%.
Frequently Asked Questions
TXN and IBM have a correlation of -0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TXN has higher volatility (18.65%) compared to IBM (12.14%). In terms of maximum drawdown, TXN dropped -85.81% vs IBM's -69.40%.
TXN currently has the higher Sharpe Ratio (1.06 vs 0.06), 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.
Find the right allocation for TXN and IBM
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer