Analyzing First Solar (NASDAQ:FSLR) & ams-OSRAM (OTCMKTS:AMSSY)

ams-OSRAM (OTCMKTS:AMSSY) and First Solar (NASDAQ:FSLR) are both technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

92.1% of First Solar shares are held by institutional investors. 0.4% of First Solar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares ams-OSRAM and First Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-9.74%	-7.58%	-1.01%
First Solar	32.47%	18.02%	13.05%

Analyst Recommendations

This is a summary of recent ratings and target prices for ams-OSRAM and First Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	0	2	1	0	2.33
First Solar	2	11	23	1	2.62

First Solar has a consensus target price of $266.53, suggesting a potential upside of 49.98%. Given First Solar’s stronger consensus rating and higher probable upside, analysts plainly believe First Solar is more favorable than ams-OSRAM.

Volatility & Risk

ams-OSRAM has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Valuation and Earnings

This table compares ams-OSRAM and First Solar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.76 billion	0.66	-$147.08 million	($1.91)	-6.48
First Solar	$5.22 billion	3.66	$1.53 billion	$16.22	10.96

First Solar has higher revenue and earnings than ams-OSRAM. ams-OSRAM is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.

Summary

First Solar beats ams-OSRAM on 14 of the 15 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.