Alimco Financial (OTCMKTS:ALMC) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.
Earnings and Valuation
This table compares Alimco Financial and Taiwan Semiconductor Manufacturing's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Alimco Financial | N/A | N/A | N/A | N/A | N/A |
Taiwan Semiconductor Manufacturing | $34.63 billion | 17.27 | $11.83 billion | $3.39 | 34.02 |
Taiwan Semiconductor Manufacturing has higher revenue and earnings than Alimco Financial.
Profitability
This table compares Alimco Financial and Taiwan Semiconductor Manufacturing's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Alimco Financial | N/A | N/A | N/A |
Taiwan Semiconductor Manufacturing | 37.94% | 28.73% | 20.16% |
Insider and Institutional Ownership
18.3% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 35.1% of Alimco Financial shares are owned by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Alimco Financial has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Alimco Financial and Taiwan Semiconductor Manufacturing, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Alimco Financial | 0 | 0 | 0 | 0 | N/A |
Taiwan Semiconductor Manufacturing | 2 | 1 | 6 | 0 | 2.44 |
Taiwan Semiconductor Manufacturing has a consensus target price of $106.75, suggesting a potential downside of 7.43%. Given Taiwan Semiconductor Manufacturing's higher possible upside, analysts clearly believe Taiwan Semiconductor Manufacturing is more favorable than Alimco Financial.
Summary
Taiwan Semiconductor Manufacturing beats Alimco Financial on 8 of the 9 factors compared between the two stocks.