Critical Contrast: Tower Semiconductor (NASDAQ:TSEM) and Everspin Technologies (NASDAQ:MRAM)


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

Analyst Recommendations

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

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

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

Profitability

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

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

Institutional & Insider Ownership

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

Earnings and Valuation

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

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

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.

Volatility and Risk

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

Summary

Tower Semiconductor beats Everspin Technologies on 9 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 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.

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.

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