The National Semiconductor Corporation (NSM) develops and manufactures semiconductors for electronic systems. The firms products are used

The National Semiconductor Corporation (NSM) develops and manufactures semiconductors for electronic systems. The firm’s products are used in a variety of applications, including LED lighting, high-speed communications, renewable energy, and security and surveillance. The company’s chief financial officer (CFO) has a report prepared annually that compares the firm’s performance to that of several key competitors. The CFO has identified Analog Devices Inc. (ADI) and Texas Instruments (TXN) as key competitors. Selected information for all three companies follows for the 12-month period ended June 2009. Based on this information, which of the two companies appears to be the best match for a performance benchmark, andwhy?

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Analog National Semiconductor (NSM) Texas Devices Inc Instruments TXN) $11.32 46.80% 17.67% 1.28B $0.978 21.31 (ADI Revenue (billions) Gross margin Operating margin Net income Earnings per share Price-to-earnings ratio 164 64.41 % 25.35% 220.20M $0.924 2.27 58.83% 20.09% 349.78M $1.225 20.48 15.56