Photronics (NASDAQ:PLAB) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.
Volatility and Risk
Photronics has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
88.8% of Photronics shares are owned by institutional investors. Comparatively, 16.6% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 3.7% of Photronics shares are owned by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Photronics and Taiwan Semiconductor Manufacturing, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Taiwan Semiconductor Manufacturing||0||4||3||0||2.43|
Photronics currently has a consensus target price of $16.50, suggesting a potential upside of 17.02%. Taiwan Semiconductor Manufacturing has a consensus target price of $127.01, suggesting a potential upside of 9.83%. Given Photronics’ stronger consensus rating and higher probable upside, research analysts plainly believe Photronics is more favorable than Taiwan Semiconductor Manufacturing.
Valuation & Earnings
This table compares Photronics and Taiwan Semiconductor Manufacturing’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Photronics||$609.69 million||1.41||$33.82 million||$0.52||27.12|
|Taiwan Semiconductor Manufacturing||$45.51 billion||13.18||$18.19 billion||$3.39||34.11|
Taiwan Semiconductor Manufacturing has higher revenue and earnings than Photronics. Photronics is trading at a lower price-to-earnings ratio than Taiwan Semiconductor Manufacturing, indicating that it is currently the more affordable of the two stocks.
This table compares Photronics and Taiwan Semiconductor Manufacturing’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Taiwan Semiconductor Manufacturing||38.14%||29.17%||19.32%|
Taiwan Semiconductor Manufacturing beats Photronics on 9 of the 14 factors compared between the two stocks.
Photronics Company Profile
Photronics, Inc. manufactures photomasks with high precision photographic quartz or glass plates containing microscopic images of electronic circuits. It manufactures semiconductors and flat-panel displays and is used as masters to transfer circuit patterns onto semiconductor wafers and FPD substrates during the fabrication of integrated circuits, a variety of FPDs and other types of electrical and optical components. The company’s manufacturing facilities, which are located in Taiwan, Korea, the United States, and Europe. Photronics was founded by Constantine S. Macricostas in 1969 and is headquartered in Brookfield, CT.
Taiwan Semiconductor Manufacturing Company Profile
Taiwan Semiconductor Manufacturing Co., Ltd. engages in the manufacture and sale of integrated circuits and wafer semiconductor devices. Its chips are used in personal computers and peripheral products; information applications; wired and wireless communications systems products; automotive and industrial equipment including consumer electronics such as digital video compact disc player, digital television, game consoles, and digital cameras. The company was founded by Chung Mou Chang on February 21, 1987 and is headquartered in Hsinchu, Taiwan.
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