Texas Instruments (NASDAQ:TXN) vs. FTC Solar (NASDAQ:FTCI) Head-To-Head Contrast

Texas Instruments (NASDAQ:TXN) and FTC Solar (NASDAQ:FTCI) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Valuation & Earnings

This table compares Texas Instruments and FTC Solar’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$17.52 billion	10.58	$6.51 billion	$6.41	31.77
FTC Solar	$127.00 million	0.36	-$50.29 million	($0.39)	-0.93

Texas Instruments has higher revenue and earnings than FTC Solar. FTC Solar is trading at a lower price-to-earnings ratio than Texas Instruments, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Texas Instruments has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Texas Instruments and FTC Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	4	11	7	0	2.14
FTC Solar	0	5	1	1	2.43

Texas Instruments presently has a consensus price target of $183.43, suggesting a potential downside of 9.92%. FTC Solar has a consensus price target of $1.49, suggesting a potential upside of 309.80%. Given FTC Solar’s stronger consensus rating and higher possible upside, analysts clearly believe FTC Solar is more favorable than Texas Instruments.

Profitability

This table compares Texas Instruments and FTC Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	35.16%	35.28%	18.06%
FTC Solar	-47.92%	-63.07%	-33.41%

Insider & Institutional Ownership

85.0% of Texas Instruments shares are owned by institutional investors. Comparatively, 45.4% of FTC Solar shares are owned by institutional investors. 0.7% of Texas Instruments shares are owned by company insiders. Comparatively, 23.1% of FTC Solar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Texas Instruments beats FTC Solar on 10 of the 15 factors compared between the two stocks.

About Texas Instruments

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.