Intel (INTC) and Tower Semiconductor (TSEM) Head-To-Head Analysis

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

Volatility & Risk

Intel has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Intel 17.32% 25.41% 14.14%
Tower Semiconductor 20.34% 21.96% 12.90%

Dividends

Intel pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Tower Semiconductor pays an annual dividend of $12.35 per share and has a dividend yield of 55.5%. Intel pays out 34.7% of its earnings in the form of a dividend. Tower Semiconductor pays out 558.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Intel has raised its dividend for 3 consecutive years.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intel 3 13 27 0 2.56
Tower Semiconductor 0 0 4 0 3.00

Intel presently has a consensus price target of $55.54, indicating a potential upside of 4.92%. Tower Semiconductor has a consensus price target of $39.25, indicating a potential upside of 76.40%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Tower Semiconductor is more favorable than Intel.

Valuation and Earnings

This table compares Intel and Tower Semiconductor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Intel $62.76 billion 3.95 $9.60 billion $3.46 15.30
Tower Semiconductor $1.39 billion 1.58 $298.01 million $2.21 10.07

Intel has higher revenue and earnings than Tower Semiconductor. Tower Semiconductor is trading at a lower price-to-earnings ratio than Intel, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

66.9% of Intel shares are owned by institutional investors. Comparatively, 47.3% of Tower Semiconductor shares are owned by institutional investors. 0.0% of Intel shares are owned by insiders. Comparatively, 1.0% of Tower Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Intel beats Tower Semiconductor on 12 of the 17 factors compared between the two stocks.

Intel Company Profile

Intel Corporation designs, manufactures, and sells computer, networking, data storage, and communication platforms worldwide. The company operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. Its platforms are used in notebooks, desktops, and wireless and wired connectivity products; enterprise, cloud, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. The company offers microprocessors, and system-on-chip and multichip packaging products. It also provides NAND flash memory products primarily used in solid-state drives; and programmable semiconductors and related products for communications, data center, industrial, military, and automotive markets. In addition, the company develops computer vision and machine learning, data analysis, localization, and mapping for advanced driver assistance systems and autonomous driving. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. The company was founded in 1968 and is based in Santa Clara, California.

Tower Semiconductor Company Profile

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. The company provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. It also offers transfer optimization and development process services to integrated device manufacturers and fabless companies. The company serves various markets, such as automotive, medical, industrial, consumer, aerospace and defense, and others. Tower Semiconductor Ltd. was founded in 1993 and is headquartered in Migdal Haemek, Israel.

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