United Microelectronics (NYSE:UMC) versus First Solar (NASDAQ:FSLR) Head to Head Comparison

First Solar (NASDAQ:FSLR) and United Microelectronics (NYSE:UMC) are both large-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent recommendations for First Solar and United Microelectronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	0	4	21	0	2.84
United Microelectronics	0	2	1	0	2.33

First Solar presently has a consensus price target of $267.52, indicating a potential upside of 18.66%. United Microelectronics has a consensus price target of $8.90, indicating a potential upside of 1.60%. Given First Solar’s stronger consensus rating and higher probable upside, equities research analysts plainly believe First Solar is more favorable than United Microelectronics.

Volatility & Risk

First Solar has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares First Solar and United Microelectronics’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$3.32 billion	7.27	$830.78 million	$9.54	23.63
United Microelectronics	$7.25 billion	3.03	$1.95 billion	$0.70	12.51

United Microelectronics has higher revenue and earnings than First Solar. United Microelectronics is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 5.1% of United Microelectronics shares are held by institutional investors. 0.6% of First Solar shares are held by insiders. Comparatively, 8.0% of United Microelectronics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares First Solar and United Microelectronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	28.75%	16.24%	10.61%
United Microelectronics	24.79%	15.60%	9.85%

Summary

First Solar beats United Microelectronics on 11 of the 14 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.