Financial Analysis: Tower Semiconductor (NASDAQ:TSEM) vs. Power Integrations (NASDAQ:POWI)
Tower Semiconductor (NASDAQ:TSEM) and Power Integrations (NASDAQ:POWI) are both mid-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
52.4% of Tower Semiconductor shares are held by institutional investors. Comparatively, 97.3% of Power Integrations shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 4.1% of Power Integrations shares are held by company 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.
This table compares Tower Semiconductor and Power Integrations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Tower Semiconductor and Power Integrations, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tower Semiconductor presently has a consensus price target of $26.57, suggesting a potential upside of 14.08%. Power Integrations has a consensus price target of $89.00, suggesting a potential downside of 13.92%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Tower Semiconductor is more favorable than Power Integrations.
Earnings and Valuation
This table compares Tower Semiconductor and Power Integrations’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tower Semiconductor||$1.30 billion||1.76||$135.58 million||$1.51||15.42|
|Power Integrations||$420.67 million||7.21||$193.47 million||$1.78||58.08|
Power Integrations has lower revenue, but higher earnings than Tower Semiconductor. Tower Semiconductor is trading at a lower price-to-earnings ratio than Power Integrations, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Tower Semiconductor has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Power Integrations has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.
Power Integrations beats Tower Semiconductor on 7 of the 13 factors compared between the two stocks.
About Tower Semiconductor
Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as automotive, medical and dental, professional photography, industrial and machine vision, AR and 3D gesture control, security, space and scientific, projectors and display, consumer, aerospace and defense, computers and servers, as well as Internet of Things; timing controllers; digital, mixed-signal/CMOS & RFCMOS; and display driver IC. The company was founded in 1993 and is headquartered in Migdal Haemek, Israel.
About Power Integrations
Power Integrations, Inc. designs, develops, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company offers a range of alternating current to direct current (DC) power conversion products that address power supply ranging from less than 1 watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, and other consumer and industrial applications, as well as light-emitting diode lighting. It also provides high-voltage diodes; and high-voltage gate-driver products under the SCALE and SCALE-2 product-family names. In addition, the company offers motor-driver ICs for use in refrigerator compressors, ceiling fans, air purifiers, pumps, fans and blowers, dishwashers, and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct staff, as well as through a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is headquartered in San Jose, California.
Receive News & Ratings for Tower Semiconductor Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tower Semiconductor and related companies with MarketBeat.com's FREE daily email newsletter.