Tower Semiconductor (NASDAQ:TSEM) and Ichor (NASDAQ:ICHR) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Analyst Ratings
This is a breakdown of recent ratings for Tower Semiconductor and Ichor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Tower Semiconductor | 0 | 0 | 3 | 0 | 3.00 |
Ichor | 0 | 0 | 7 | 0 | 3.00 |
Tower Semiconductor presently has a consensus price target of $37.50, suggesting a potential upside of 23.76%. Ichor has a consensus price target of $43.7143, suggesting a potential downside of 2.94%. Given Tower Semiconductor's higher possible upside, analysts clearly believe Tower Semiconductor is more favorable than Ichor.
Volatility & Risk
Tower Semiconductor has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Ichor has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.
Insider & Institutional Ownership
54.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 78.2% of Ichor shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by insiders. Comparatively, 3.9% of Ichor shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Tower Semiconductor and Ichor's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Tower Semiconductor | 5.87% | 5.35% | 3.75% |
Ichor | 3.34% | 17.61% | 7.12% |
Earnings & Valuation
This table compares Tower Semiconductor and Ichor's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Tower Semiconductor | $1.23 billion | 2.62 | $90.05 million | $0.87 | 34.83 |
Ichor | $620.84 million | 1.69 | $10.73 million | $0.95 | 47.41 |
Tower Semiconductor has higher revenue and earnings than Ichor. Tower Semiconductor is trading at a lower price-to-earnings ratio than Ichor, indicating that it is currently the more affordable of the two stocks.
Summary
Ichor beats Tower Semiconductor on 7 of the 13 factors compared between the two stocks.