Analyzing Tower Semiconductor (TSEM) and Its Rivals

Tower Semiconductor (NASDAQ:TSEM) is one of 220 public companies in the “Semiconductors & Semiconductor Equipment” industry, but how does it compare to its rivals? We will compare Tower Semiconductor to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Tower Semiconductor and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	2	7	1	2.90
Tower Semiconductor Competitors	3513	12392	25843	1004	2.57

Tower Semiconductor presently has a consensus target price of $297.12, indicating a potential upside of 88.22%. As a group, “Semiconductors & Semiconductor Equipment” companies have a potential upside of 36.97%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Tower Semiconductor is more favorable than its rivals.

Insider and Institutional Ownership

70.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by company insiders. Comparatively, 11.8% of shares of all “Semiconductors & Semiconductor Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Tower Semiconductor and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Tower Semiconductor	$1.84 billion	$220.47 million	50.76
Tower Semiconductor Competitors	$7.35 billion	$2.53 billion	19.98

Tower Semiconductor’s rivals have higher revenue and earnings than Tower Semiconductor. Tower Semiconductor is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Tower Semiconductor and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	19.36%	11.72%	9.62%
Tower Semiconductor Competitors	-1,255.36%	-126.08%	-3.83%

Volatility & Risk

Tower Semiconductor has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Tower Semiconductor’s rivals have a beta of 2.81, suggesting that their average share price is 181% more volatile than the S&P 500.

Summary

Tower Semiconductor beats its rivals on 9 of the 13 factors compared.

About Tower Semiconductor

Tower Semiconductor Ltd. is an Israel-based specialty semiconductor foundry that manufactures chips for companies that design and market their own products. Its services include wafer fabrication, process development and engineering support, helping customers bring semiconductor designs from development into production. The company focuses on analog and mixed-signal technologies used in areas such as radio-frequency communications, power management, image sensing, automotive electronics and silicon photonics.