NXP Semiconductors vs Texas Instruments
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KIRA’s take AI analyst
I put NXP Semiconductors and Texas Instruments side by side, using each one’s latest annual report. Here is what stands out:
- Texas Instruments is the larger business, with $17.7B of revenue in fiscal 2025 against $12.3B for NXP Semiconductors.
- Texas Instruments grew revenue faster (13.1%, against −2.7%).
- Texas Instruments kept more of each dollar of sales as operating profit (34.1% operating margin, against 24.8%).
- NXP Semiconductors turned more of its sales into free cash flow (19.8% FCF margin, against 14.7%).
- Texas Instruments earned a higher return on the capital invested in it (21.8%, against 12.6%).
- Investors pay more for each dollar of Texas Instruments’s earnings: a P/E of 38.7x against 23.5x for NXP Semiconductors.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
NXP Semiconductors
NXPI
3/11
5-year growthFCF marginShare count change
Texas Instruments
TXN
8/11
Revenue growthGross marginOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | NXPI FY25 | TXN FY25 |
|---|---|---|
| Size | ||
| Market cap | $62.3B | $274.6B |
| Revenue | $12.3B | $17.7B |
| Free cash flow | $2.4B | $2.6B |
| Net income | $2.0B | $5.0B |
| Growth | ||
| Revenue growth | −2.7% | 13.1% |
| 5-year growth | 7.3% | 4.1% |
| Share count change | −1.4% | −0.7% |
| Profitability | ||
| Gross margin | 54.7% | 57.0% |
| Operating margin | 24.8% | 34.1% |
| Net margin | 16.5% | 28.3% |
| FCF margin | 19.8% | 14.7% |
| Return on capital | 12.6% | 21.8% |
| Return on equity | 21.0% | 30.2% |
| Balance sheet | ||
| Net debt | $9.8B | $9.2B |
| Net debt / EBITDA | 2.5x | 1.2x |
| Dividends and buybacks | $1.9B | $6.5B |
| Valuation & quality | ||
| P/E | 23.5x | 38.7x |
| Piotroski F-score | 4 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.