Critical Comparison: Tower Semiconductor (TSEM) & Solaredge Technologies (SEDG)
Tower Semiconductor (NASDAQ:TSEM) and Solaredge Technologies (NASDAQ:SEDG) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Valuation and Earnings
This table compares Tower Semiconductor and Solaredge Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Tower Semiconductor||$1.39 billion||1.12||$298.01 million||$2.21||7.13|
|Solaredge Technologies||$607.04 million||3.04||$84.17 million||$2.25||17.95|
Insider & Institutional Ownership
47.5% of Tower Semiconductor shares are held by institutional investors. Comparatively, 79.8% of Solaredge Technologies shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 9.7% of Solaredge Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Tower Semiconductor and Solaredge Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Tower Semiconductor has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, Solaredge Technologies has a beta of -0.42, meaning that its share price is 142% less volatile than the S&P 500.
This is a breakdown of recent recommendations for Tower Semiconductor and Solaredge Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tower Semiconductor currently has a consensus price target of $26.50, indicating a potential upside of 68.25%. Solaredge Technologies has a consensus price target of $54.27, indicating a potential upside of 34.40%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tower Semiconductor is more favorable than Solaredge Technologies.
Solaredge Technologies beats Tower Semiconductor on 8 of the 14 factors compared between the two stocks.
Tower Semiconductor Company Profile
Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. The company provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. It also offers transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves various markets, such as automotive, medical, industrial, consumer, aerospace and defense, and others. Tower Semiconductor Ltd. was founded in 1993 and is headquartered in Migdal Haemek, Israel.
Solaredge Technologies Company Profile
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in Israel, the United States, the Netherlands, Europe, and internationally. The company's DC optimized inverter systems include power optimizers and inverters, as well as a cloud-based monitoring platform. Its products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations. The company sells its products directly to solar installers, as well as engineering, procurement, and construction firms; and indirectly to solar installers through distributors and electrical equipment wholesalers, as well as PV module manufacturers. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.
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