TXN’s 16% Decline in a Month Brings Valuations Into Focus – Is OLED a Better Deal?
Universal Display (OLED) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Texas Instruments (TXN), suggesting you may be better off investing in OLED
- OLED’s Last 12 Months revenue growth was 6.1%, vs. TXN’s 3.6%.
- In addition, its Last 3-Year Average revenue growth came in at 4.4%, ahead of TXN’s -4.9%.
- OLED’s LTM margin is higher: 37.9% vs. TXN’s 34.9%.
TXN designs and sells semiconductors, including power management products and microcontrollers, serving electronics designers and manufacturers through Analog and Embedded Processing segments. OLED engages in OLED technology research, development, and commercialization, holding exclusive rights to ~5,500 patents and supplying proprietary materials to display and lighting manufacturers.
Valuation & Performance Overview
| TXN | OLED | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 28.7 | 26.3 | OLED |
| Revenue Growth | |||
| Last Quarter | 16.4% | 0.6% | TXN |
| Last 12 Months | 3.6% | 6.1% | OLED |
| Last 3 Year Average | -4.9% | 4.4% | OLED |
| Operating Margins | |||
| Last 12 Months | 34.9% | 37.9% | OLED |
| Last 3 Year Average | 39.5% | 39.4% | TXN |
| Momentum | |||
| Last 3 Year Return | 10.4% | 14.8% | OLED |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: TXN Revenue Comparison | OLED Revenue Comparison
See more margin details: TXN Operating Income Comparison | OLED Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell OLED Stock to see if Universal Display’s edge holds up under the hood or if Texas Instruments still has cards to play (see Buy or Sell TXN Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| TXN Return | 32% | 18% | -10% | 6% | 13% | 0% | 72% | ||
| OLED Return | 12% | -28% | -34% | 79% | -23% | -7% | -30% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 8% | 98% | <=== | |
| Monthly Win Rates [3] | |||||||||
| TXN Win Rate | 75% | 67% | 42% | 58% | 50% | 43% | 56% | ||
| OLED Win Rate | 67% | 50% | 42% | 67% | 42% | 57% | 54% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| TXN Max Drawdown | -27% | -1% | -20% | -12% | -7% | -22% | -15% | ||
| OLED Max Drawdown | -48% | -38% | -45% | -1% | -23% | -27% | -30% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year till date (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read OLED Dip Buyer Analyses to see how the stock has fallen and recovered in the past.