Rohm (OTCMKTS:ROHCY) & Tower Semiconductor (NASDAQ:TSEM) Head to Head Survey

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

Risk & Volatility

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

Analyst Recommendations

This is a summary of current ratings and price targets for Tower Semiconductor and Rohm, as reported by MarketBeat.

	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 currently has a consensus price target of $316.00, suggesting a potential upside of 88.59%. Given Tower Semiconductor’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tower Semiconductor is more favorable than Rohm.

Earnings & Valuation

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	12.03	$220.47 million	$2.53	66.23
Rohm	$3.20 billion	2.87	-$1.05 billion	($2.57)	-9.25

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.

Insider & 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

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%

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.