Tower Semiconductor (NASDAQ:TSEM – Get Free Report) and Ideal Power (NASDAQ:IPWR – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
Tower Semiconductor has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Ideal Power has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
Valuation and Earnings
This table compares Tower Semiconductor and Ideal Power”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tower Semiconductor | $1.42 billion | 3.73 | $518.49 million | $1.85 | 25.85 |
| Ideal Power | $200,000.00 | 269.77 | -$9.95 million | ($1.40) | -4.73 |
Institutional & Insider Ownership
70.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 16.4% of Ideal Power shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by company insiders. Comparatively, 5.0% of Ideal Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Tower Semiconductor and Ideal Power, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tower Semiconductor | 0 | 0 | 3 | 0 | 3.00 |
| Ideal Power | 0 | 0 | 1 | 0 | 3.00 |
Tower Semiconductor presently has a consensus target price of $58.33, suggesting a potential upside of 21.96%. Ideal Power has a consensus target price of $14.00, suggesting a potential upside of 111.48%. Given Ideal Power’s higher possible upside, analysts clearly believe Ideal Power is more favorable than Tower Semiconductor.
Profitability
This table compares Tower Semiconductor and Ideal Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tower Semiconductor | 14.75% | 8.22% | 6.91% |
| Ideal Power | -7,152.45% | -55.69% | -49.80% |
Summary
Tower Semiconductor beats Ideal Power on 9 of the 13 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 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.
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