Paramount Skydance Corporation (PSKY) vs Texas Instruments Incorporated (TXN): Which Is the Better Buy in 2026?
As of 2026-06-19, PSKY is undervalued at $10, with a DCF intrinsic value of $1100 and a margin of safety of 99%. TXN is overvalued at $323, with an intrinsic value of $283 and a margin of safety of -14%. Of the two, PSKY has the wider margin of safety.
Rewards
- ★Share count has been reduced by 40% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★FCF yield of 147.4% is historically attractive — the business generates significant cash relative to its price.
- ★Market sentiment is in extreme fear territory (score: 25/100) — historically, periods of fear have often presented buying opportunities.
- ★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
- ⚠Net debt/EBITDA of 4.7x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
- ⚠Altman Z-Score of 0.31 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Free cash flow has declined at a 6.5% CAGR over the past 4 years — a concerning trend.
- ⚠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 $10?
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 pessimistic — investigate whether fears are temporary or structural"
"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: PSKY vs TXN
Is Paramount Skydance Corporation or Texas Instruments Incorporated more undervalued in 2026?▼
Based on our discounted cash flow model, PSKY trades at a 99.1% margin of safety (intrinsic value $1100 vs. price $10), compared to TXN's -13.9% margin of safety (intrinsic $283 vs. $323).
Which stock has a wider economic moat, Paramount Skydance Corporation or Texas Instruments Incorporated?▼
TXN scores 48/100 (Narrow moat), while PSKY scores 33/100 (None moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is Paramount Skydance Corporation in financial distress?▼
PSKY's Altman Z-Score of 0.3 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, Paramount Skydance Corporation or Texas Instruments Incorporated?▼
Paramount Skydance Corporation (PSKY) generates a 147.4% 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, Paramount Skydance Corporation or Texas Instruments Incorporated?▼
TXN earns 17.9% ROIC versus PSKY's 7.5%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.