Head-To-Head Review: Astera Labs (NASDAQ:ALAB) & Texas Instruments (NASDAQ:TXN)

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

Valuation & Earnings

This table compares Texas Instruments and Astera Labs”s revenue, earnings per share and valuation.

Texas Instruments has higher revenue and earnings than Astera Labs.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Texas Instruments and Astera Labs, as provided by MarketBeat.com.

Texas Instruments presently has a consensus target price of $204.67, suggesting a potential downside of 2.14%. Astera Labs has a consensus target price of $71.36, suggesting a potential upside of 33.34%. Given Astera Labs’ stronger consensus rating and higher possible upside, analysts clearly believe Astera Labs is more favorable than Texas Instruments.

Institutional & Insider Ownership

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

Profitability

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

Summary

Texas Instruments beats Astera Labs on 7 of the 11 factors compared between the two stocks.

About Texas Instruments

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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

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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.