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

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astera Labs	$229.55 million	36.30	-$26.26 million	N/A	N/A
Texas Instruments	$17.52 billion	10.90	$6.51 billion	$6.41	32.63

Texas Instruments has higher revenue and earnings than Astera Labs.

Analyst Recommendations

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

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

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

Institutional & Insider Ownership

85.0% of Texas Instruments shares are held by institutional investors. 0.7% of Texas Instruments shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

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

Summary

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

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.

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.