Everspin Technologies (NASDAQ:MRAM) and Tower Semiconductor (NASDAQ:TSEM) are both business services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Everspin Technologies and Tower Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Everspin Technologies $37.50 million 2.53 -$14.67 million ($0.80) -6.16
Tower Semiconductor $1.23 billion 2.43 $90.05 million $0.87 32.22

Tower Semiconductor has higher revenue and earnings than Everspin Technologies. Everspin Technologies is trading at a lower price-to-earnings ratio than Tower Semiconductor, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

26.7% of Everspin Technologies shares are owned by institutional investors. Comparatively, 54.5% of Tower Semiconductor shares are owned by institutional investors. 23.6% of Everspin Technologies shares are owned by insiders. Comparatively, 1.0% of Tower Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Everspin Technologies and Tower Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Everspin Technologies 0 0 1 0 3.00
Tower Semiconductor 0 0 3 0 3.00

Everspin Technologies presently has a consensus price target of $10.00, suggesting a potential upside of 102.84%. Tower Semiconductor has a consensus price target of $37.50, suggesting a potential upside of 33.79%. Given Everspin Technologies’ higher possible upside, equities analysts plainly believe Everspin Technologies is more favorable than Tower Semiconductor.

Risk & Volatility

Everspin Technologies has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Profitability

This table compares Everspin Technologies and Tower Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Everspin Technologies -24.00% -44.04% -24.46%
Tower Semiconductor 5.87% 5.35% 3.75%

Summary

Tower Semiconductor beats Everspin Technologies on 9 of the 13 factors compared between the two stocks.

About Everspin Technologies

Everspin Technologies, Inc. manufactures and sells magnetoresistive random access memory (MRAM) products in the United States, Hong Kong, Japan, China, Germany, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for embedded MRAM. The company provides its products for applications, including data center, industrial, medical, automotive, aerospace, and transportation markets. It serves original equipment manufacturers and original design manufacturers through a direct sales channel and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

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 consumer electronics, personal computers, communications, automotive, industrial, aerospace, and medical device products. The company was founded in 1993 and is headquartered in Migdal Haemek, Israel.

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