Head-To-Head Survey: Rohm (OTCMKTS:ROHCY) and Tower Semiconductor (NASDAQ:TSEM)

Tower Semiconductor (NASDAQ:TSEM) and Rohm (OTCMKTS:ROHCY) are both technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent recommendations for Tower Semiconductor and Rohm, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	2	7	1	2.90
Rohm	0	1	1	0	2.50

Tower Semiconductor presently has a consensus price target of $316.00, suggesting a potential upside of 68.16%. Given Tower Semiconductor’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tower Semiconductor is more favorable than Rohm.

Volatility & Risk

Tower Semiconductor has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, Rohm has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	16.94%	9.83%	8.25%
Rohm	-29.85%	4.39%	2.70%

Valuation & Earnings

This table compares Tower Semiconductor and Rohm”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tower Semiconductor	$1.57 billion	13.49	$220.47 million	$2.53	74.28
Rohm	$3.20 billion	2.93	-$1.05 billion	($2.57)	-9.43

Tower Semiconductor has higher earnings, but lower revenue than Rohm. Rohm 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 & Insider Ownership

70.5% of Tower Semiconductor shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by 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.

Summary

Tower Semiconductor beats Rohm on 13 of the 15 factors compared between the two stocks.

About Tower Semiconductor

Tower Semiconductor Ltd., an independent semiconductor foundry, focus on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices in Israel, the United States, Japan, Europe, and internationally. 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 provides design enablement platform for quick and accurate design cycle, as well as 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, military, and medical device products. The company was incorporated in 1993 and is headquartered in Migdal Haemek, Israel.

About Rohm

ROHM Co., Ltd. manufactures and sells electronic components worldwide. The company operates through three segments: LSI, Semiconductor Devices, and Modules. It provides ICs comprising memory, amplifiers and linear, power management, motor/actuator drivers, resistors, clocks and timers, switches and multiplexers, logic, data converters, sensors and MEMS, display drivers, interfaces, wireless LSIs, audio and video products, speech synthesis LSI, and microcontrollers. The company also offers discrete semiconductor products, such as MOSFETs, bipolar transistors, and diodes; power devices, including power transistors and diodes, SiC power devices, IGBT, and IPM; modules, including optical modules, wireless communication modules, wireless charger modules, and print heads; and opto devices comprising LEDs, LED displays, laser diodes, and optical sensors, as well as foundry services, including thin-film piezoelectric MEMS, wafers, and WL-CSP. Its products are used in industry, automotive, consumer electronics, and telecommunications applications. The company was incorporated in 1940 and is headquartered in Kyoto, Japan.