SCI Engineered Materials (OTCMKTS:SCIA) & First Solar (NASDAQ:FSLR) Financial Analysis

First Solar (NASDAQ:FSLR) and SCI Engineered Materials (OTCMKTS:SCIA) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Profitability

This table compares First Solar and SCI Engineered Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	32.47%	18.02%	13.05%
SCI Engineered Materials	8.97%	18.52%	13.39%

Analyst Recommendations

This is a summary of current ratings for First Solar and SCI Engineered Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	2	10	22	1	2.63
SCI Engineered Materials	0	0	0	0	0.00

First Solar currently has a consensus target price of $264.44, indicating a potential upside of 23.41%. Given First Solar’s stronger consensus rating and higher possible upside, equities research analysts plainly believe First Solar is more favorable than SCI Engineered Materials.

Valuation and Earnings

This table compares First Solar and SCI Engineered Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$5.22 billion	4.41	$1.53 billion	$16.22	13.21
SCI Engineered Materials	$19.61 million	1.96	$1.75 million	$0.59	14.63

First Solar has higher revenue and earnings than SCI Engineered Materials. First Solar is trading at a lower price-to-earnings ratio than SCI Engineered Materials, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.1% of First Solar shares are owned by institutional investors. Comparatively, 27.6% of SCI Engineered Materials shares are owned by institutional investors. 0.4% of First Solar shares are owned by insiders. Comparatively, 19.3% of SCI Engineered Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

First Solar has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, SCI Engineered Materials has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Summary

First Solar beats SCI Engineered Materials on 11 of the 15 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

About SCI Engineered Materials

SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company’s materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.