Tower Semiconductor (NASDAQ:TSEM – Get Free Report) and SmartKem (NASDAQ:SMTK – Get Free Report) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.
Profitability
This table compares Tower Semiconductor and SmartKem’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% |
| SmartKem | -3,997.69% | -610.88% | -249.62% |
Earnings & Valuation
This table compares Tower Semiconductor and SmartKem”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tower Semiconductor | $1.57 billion | 20.59 | $220.47 million | $2.15 | 133.37 |
| SmartKem | $700,000.00 | 9.60 | -$10.51 million | ($2.30) | -0.14 |
Tower Semiconductor has higher revenue and earnings than SmartKem. SmartKem 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 and Insider Ownership
70.5% of Tower Semiconductor shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 3.5% of SmartKem shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Tower Semiconductor has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, SmartKem has a beta of 3.73, meaning that its share price is 273% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Tower Semiconductor and SmartKem, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tower Semiconductor | 0 | 3 | 2 | 0 | 2.40 |
| SmartKem | 1 | 0 | 0 | 0 | 1.00 |
Tower Semiconductor currently has a consensus target price of $276.75, indicating a potential downside of 3.48%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, research analysts clearly believe Tower Semiconductor is more favorable than SmartKem.
Summary
Tower Semiconductor beats SmartKem on 12 of the 14 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 SmartKem
SmartKem, Inc. develops electronics transistors using its proprietary advanced semiconductor materials. Its technology can be used in a range of applications including next generation MicroLED, LCD and AMOLED displays, as well as advanced computer and AI chip packaging, and a new type of sensor. The company was founded on September 21, 2018 and is headquartered in Blackley, the United Kingdom.
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