Ideal Power (NASDAQ:IPWR – Get Free Report) and Tower Semiconductor (NASDAQ:TSEM – Get Free Report) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Ideal Power and Tower Semiconductor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ideal Power | $200,000.00 | 275.88 | -$9.95 million | ($1.40) | -4.84 |
| Tower Semiconductor | $1.40 billion | 3.78 | $518.49 million | $1.85 | 25.84 |
Tower Semiconductor has higher revenue and earnings than Ideal Power. Ideal Power is trading at a lower price-to-earnings ratio than Tower Semiconductor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ideal Power | 0 | 0 | 1 | 0 | 3.00 |
| Tower Semiconductor | 0 | 0 | 3 | 0 | 3.00 |
Ideal Power presently has a consensus target price of $14.00, indicating a potential upside of 106.79%. Tower Semiconductor has a consensus target price of $58.33, indicating a potential upside of 22.01%. Given Ideal Power’s higher probable upside, analysts plainly believe Ideal Power is more favorable than Tower Semiconductor.
Institutional and Insider Ownership
16.4% of Ideal Power shares are held by institutional investors. Comparatively, 70.5% of Tower Semiconductor shares are held by institutional investors. 5.0% of Ideal Power 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Ideal Power has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.
Profitability
This table compares Ideal Power and Tower Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ideal Power | -7,152.45% | -55.69% | -49.80% |
| Tower Semiconductor | 14.75% | 8.22% | 6.91% |
Summary
Tower Semiconductor beats Ideal Power on 9 of the 13 factors compared between the two stocks.
About Ideal Power
Ideal Power Inc. focuses on the development and commercialization of its bidirectional bipolar junction TRANsistor solid-state switch technology. It also offers SymCool Power Module designed to meet low conduction loss needs of the solid-state circuit breaker market. The company serves electric and hybrid electric vehicles, electric vehicle charging, renewable energy and energy storage system power converters, uninterruptible power supplies for data centers, industrial motor drives, solid-state circuit breakers, distribution and transmission switches and controls, and other industrial and military markets. The company was formerly known as Ideal Power Converters Inc. and changed its name to Ideal Power Inc. in July 2013. Ideal Power Inc. was incorporated in 2007 and is headquartered in Austin, Texas.
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.
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