Contrasting Texas Instruments (NASDAQ:TXN) & Astera Labs (NASDAQ:ALAB)

Texas Instruments (NASDAQ:TXN) and Astera Labs (NASDAQ:ALAB) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Texas Instruments and Astera Labs, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Texas Instruments	3	10	8	0	2.24
Astera Labs	0	0	11	0	3.00

Texas Instruments presently has a consensus target price of $204.67, indicating a potential upside of 1.52%. Astera Labs has a consensus target price of $71.36, indicating a potential upside of 40.81%. Given Astera Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Astera Labs is more favorable than Texas Instruments.

Profitability

This table compares Texas Instruments and Astera Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Texas Instruments	33.01%	31.10%	15.73%
Astera Labs	N/A	N/A	N/A

Institutional and Insider Ownership

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

Valuation & Earnings

This table compares Texas Instruments and Astera Labs”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Texas Instruments	$16.09 billion	11.41	$6.51 billion	$6.41	31.45
Astera Labs	$229.55 million	34.38	-$26.26 million	N/A	N/A

Texas Instruments has higher revenue and earnings than Astera Labs.

Summary

Texas Instruments beats Astera Labs on 7 of the 11 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 Astera Labs

Astera Labs, Inc. designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale. The company was incorporated in 2017 and is based in Santa Clara, California.