Comparing Tower Semiconductor (TSEM) and Its Rivals

Tower Semiconductor (NASDAQ:TSEM) is one of 220 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it weigh in compared to its competitors? We will compare Tower Semiconductor to similar businesses based on the strength of its earnings, risk, dividends, analyst recommendations, institutional ownership, profitability and valuation.

Earnings and Valuation

This table compares Tower Semiconductor and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tower Semiconductor	$1.84 billion	$220.47 million	50.76
Tower Semiconductor Competitors	$7.35 billion	$2.53 billion	19.98

Tower Semiconductor’s competitors have higher revenue and earnings than Tower Semiconductor. Tower Semiconductor is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Tower Semiconductor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	19.36%	11.72%	9.62%
Tower Semiconductor Competitors	-1,255.36%	-126.08%	-3.83%

Insider & Institutional Ownership

70.5% of Tower Semiconductor shares are held by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by institutional investors. 1.0% of Tower Semiconductor shares are held by insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Tower Semiconductor and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	2	7	1	2.90
Tower Semiconductor Competitors	3513	12392	25843	1004	2.57

Tower Semiconductor presently has a consensus price target of $297.12, suggesting a potential upside of 88.22%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 36.97%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, research analysts plainly believe Tower Semiconductor is more favorable than its competitors.

Risk and Volatility

Tower Semiconductor has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Tower Semiconductor’s competitors have a beta of 2.81, suggesting that their average stock price is 181% more volatile than the S&P 500.

Summary

Tower Semiconductor beats its competitors on 9 of the 13 factors compared.

About Tower Semiconductor

Tower Semiconductor Ltd. is an Israel-based specialty semiconductor foundry that manufactures chips for companies that design and market their own products. Its services include wafer fabrication, process development and engineering support, helping customers bring semiconductor designs from development into production. The company focuses on analog and mixed-signal technologies used in areas such as radio-frequency communications, power management, image sensing, automotive electronics and silicon photonics.