Reviewing indie Semiconductor (NASDAQ:INDI) and Tower Semiconductor (NASDAQ:TSEM)

indie Semiconductor (NASDAQ:INDIGet Free Report) and Tower Semiconductor (NASDAQ:TSEMGet Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Earnings and Valuation

This table compares indie Semiconductor and Tower Semiconductor’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
indie Semiconductor $223.17 million 5.65 -$117.62 million ($0.49) -13.78
Tower Semiconductor $1.42 billion 2.88 $518.49 million $4.41 8.50

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

Profitability

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

Net Margins Return on Equity Return on Assets
indie Semiconductor -32.12% -21.08% -11.36%
Tower Semiconductor 35.27% 8.78% 7.21%

Volatility and Risk

indie Semiconductor has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

67.7% of indie Semiconductor shares are held by institutional investors. Comparatively, 70.5% of Tower Semiconductor shares are held by institutional investors. 8.2% of indie Semiconductor shares are held by company insiders. Comparatively, 1.0% of Tower Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for indie Semiconductor and Tower Semiconductor, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
indie Semiconductor 0 0 7 0 3.00
Tower Semiconductor 0 0 3 0 3.00

indie Semiconductor currently has a consensus target price of $12.64, suggesting a potential upside of 87.30%. Tower Semiconductor has a consensus target price of $46.33, suggesting a potential upside of 23.56%. Given indie Semiconductor’s higher possible upside, equities research analysts clearly believe indie Semiconductor is more favorable than Tower Semiconductor.

Summary

Tower Semiconductor beats indie Semiconductor on 8 of the 13 factors compared between the two stocks.

About indie Semiconductor

(Get Free Report)

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, California.

About Tower Semiconductor

(Get Free Report)

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.

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