Head-To-Head Survey: Tower Semiconductor (NASDAQ:TSEM) and IQE (OTCMKTS:IQEPF)

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

Analyst Recommendations

This is a breakdown of current recommendations for Tower Semiconductor and IQE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	3	2	0	2.40
IQE	0	0	0	0	0.00

Tower Semiconductor currently has a consensus price target of $276.75, indicating a potential downside of 2.36%. Given Tower Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe Tower Semiconductor is more favorable than IQE.

Risk and Volatility

Tower Semiconductor has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, IQE has a beta of 1.69, indicating that its stock price is 69% more volatile than the S&P 500.

Insider and Institutional Ownership

70.5% of Tower Semiconductor shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned 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 Tower Semiconductor and IQE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	15.13%	8.54%	7.28%
IQE	N/A	N/A	N/A

Valuation and Earnings

This table compares Tower Semiconductor and IQE”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	20.35	$220.47 million	$2.15	131.83
IQE	$150.84 million	4.09	-$48.79 million	N/A	N/A

Tower Semiconductor has higher revenue and earnings than IQE.

Summary

Tower Semiconductor beats IQE on 11 of the 12 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 IQE

IQE plc, together with its subsidiaries, develops, manufactures, and sells advanced semiconductor materials. It operates through three segments: Wireless, Photonics, and CMOS++. The company manufactures and sells compound semiconductor materials for the wireless market which includes radio frequency devices for wireless communications, and photonics market, that includes applications that transmit and sense visible and infrared lights, as well as advanced semiconductor materials related to silicon. It operates in the United States, rest of the Americas, France, Germany, Israel, the United Kingdom, rest of Europe, the Middle East, Africa, the People's Republic of China, Japan, Taiwan, and rest of the Asia-Pacific. The company was founded in 1988 and is headquartered in Cardiff, the United Kingdom.