Analyzing EMCORE (NASDAQ:EMKR) and Taiwan Semiconductor Mfg. (NASDAQ:TSM)
EMCORE (NASDAQ:EMKR) and Taiwan Semiconductor Mfg. (NYSE:TSM) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, analyst recommendations, institutional ownership, valuation, earnings and profitability.
Volatility & Risk
EMCORE has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Mfg. has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
This table compares EMCORE and Taiwan Semiconductor Mfg.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taiwan Semiconductor Mfg.||31.42%||19.01%||15.15%|
Earnings and Valuation
This table compares EMCORE and Taiwan Semiconductor Mfg.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|EMCORE||$85.62 million||0.96||-$17.45 million||($0.53)||-5.42|
|Taiwan Semiconductor Mfg.||$34.20 billion||6.36||$11.86 billion||$2.24||18.72|
Taiwan Semiconductor Mfg. has higher revenue and earnings than EMCORE. EMCORE is trading at a lower price-to-earnings ratio than Taiwan Semiconductor Mfg., indicating that it is currently the more affordable of the two stocks.
Taiwan Semiconductor Mfg. pays an annual dividend of $1.02 per share and has a dividend yield of 2.4%. EMCORE does not pay a dividend. Taiwan Semiconductor Mfg. pays out 45.5% of its earnings in the form of a dividend. Taiwan Semiconductor Mfg. has increased its dividend for 4 consecutive years.
This is a summary of current recommendations for EMCORE and Taiwan Semiconductor Mfg., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taiwan Semiconductor Mfg.||0||1||2||0||2.67|
EMCORE presently has a consensus price target of $5.15, indicating a potential upside of 79.44%. Taiwan Semiconductor Mfg. has a consensus price target of $50.00, indicating a potential upside of 19.22%. Given EMCORE’s stronger consensus rating and higher possible upside, analysts clearly believe EMCORE is more favorable than Taiwan Semiconductor Mfg..
Insider & Institutional Ownership
56.3% of EMCORE shares are owned by institutional investors. Comparatively, 19.5% of Taiwan Semiconductor Mfg. shares are owned by institutional investors. 1.7% of EMCORE shares are owned by insiders. Comparatively, 1.1% of Taiwan Semiconductor Mfg. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Taiwan Semiconductor Mfg. beats EMCORE on 11 of the 17 factors compared between the two stocks.
EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in California. It offers broadband products comprising cable television; laser, receiver, and photodetector component products; radio frequency over glass FTTP products; satellite/microwave communications products; and wireless communications products. The company also provides chip devices products, including high-power gain chips, GPON fiber-to-the-premises, and data center chip products; and navigation systems products, such as fiber optic gyroscope products and inertial measurement units and navigation systems products. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.
About Taiwan Semiconductor Mfg.
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices. The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services. It is also involved in investing activities. The company operates in North America, China, Japan, Asia Pacific, Europe, the Middle East, and Africa. Taiwan Semiconductor Manufacturing Company Limited was founded in 1987 and is headquartered in HsinChu, Taiwan.
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