Invesco Ltd. (IVZ) vs Texas Instruments Incorporated (TXN): Which Is the Better Buy in 2026?
As of 2026-06-19, IVZ is undervalued at $28, with a DCF intrinsic value of $104 and a margin of safety of 73%. TXN is overvalued at $323, with an intrinsic value of $283 and a margin of safety of -14%. Of the two, IVZ has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 41.3% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★FCF yield of 11.6% is historically attractive — the business generates significant cash relative to its price.
- ★PEG ratio of 0.38 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
- ★Texas Instruments Incorporated has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
- ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
- ★Altman Z-Score of 8.73 indicates very low bankruptcy risk — the company is firmly in the safe zone.
Risks
- ⚠ROIC has declined by 6.5 percentage points over the past 4 years, which may signal competitive erosion.
- ⚠Altman Z-Score of 1.39 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
- ⚠FCF yield of 0.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
- ⚠Trailing P/E of 55.3x is 104% above the historical average of 27.1x — the stock trades at a premium to its own history.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $28?
Market below historical growth — potential opportunity.
What growth rate is the market pricing in at $323?
The market implies +22.8% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +32.1%, reflecting heavy growth investment.
Economic Moat Score
Learn more →No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Narrow moat with roic consistency as the key competitive advantage. Improving reinvestment efficiency would strengthen the moat.
Forensic Accounting
Learn more →Insufficient data for Beneish M-Score calculation (requires 2+ years).
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is optimistic — be cautious and ensure you have a margin of safety"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: IVZ vs TXN
Is Invesco Ltd. or Texas Instruments Incorporated more undervalued in 2026?▼
Based on our discounted cash flow model, IVZ trades at a 73.0% margin of safety (intrinsic value $104 vs. price $28), compared to TXN's -13.9% margin of safety (intrinsic $283 vs. $323).
Which stock has a wider economic moat, Invesco Ltd. or Texas Instruments Incorporated?▼
TXN scores 48/100 (Narrow moat), while IVZ scores 36/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Invesco Ltd. in financial distress?▼
IVZ's Altman Z-Score of 1.4 places it in the Distress zone, signaling elevated bankruptcy risk. TXN scores 8.7 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which company has better free cash flow, Invesco Ltd. or Texas Instruments Incorporated?▼
Invesco Ltd. (IVZ) generates a 11.6% free cash flow yield, compared to Texas Instruments Incorporated's 0.9%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.
Which stock has higher return on invested capital, Invesco Ltd. or Texas Instruments Incorporated?▼
TXN earns 17.9% ROIC versus IVZ's 6.5%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Invesco Ltd.'s or Texas Instruments Incorporated's?▼
IVZ's dividend earns a safety score of 65/100 (Safe), compared to TXN's 34/100 (Unsafe). IVZ has raised its dividend for 0 consecutive years.