Semtech (NASDAQ:SMTC – Get Rating) and First Solar (NASDAQ:FSLR – Get Rating) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.
Risk & Volatility
Semtech has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
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Valuation and Earnings
This table compares Semtech and First Solar's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
| Semtech | $740.86 million | 2.85 | $125.66 million | $2.29 | 14.42 |
| First Solar | $2.92 billion | 6.48 | $468.69 million | $0.88 | 201.82 |
First Solar has higher revenue and earnings than Semtech. Semtech is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Semtech and First Solar's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
| Semtech | 18.88% | 21.15% | 13.19% |
| First Solar | 3.75% | 1.61% | 1.27% |
Institutional and Insider Ownership
96.3% of Semtech shares are held by institutional investors. Comparatively, 81.0% of First Solar shares are held by institutional investors. 1.1% of Semtech shares are held by company insiders. Comparatively, 0.5% of First Solar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Semtech and First Solar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
| Semtech | 0 | 7 | 3 | 0 | 2.30 |
| First Solar | 0 | 6 | 14 | 0 | 2.70 |
Semtech presently has a consensus target price of $49.08, indicating a potential upside of 48.60%. First Solar has a consensus target price of $177.63, indicating a potential upside of 0.01%. Given Semtech's higher probable upside, equities research analysts plainly believe Semtech is more favorable than First Solar.
Summary
Semtech beats First Solar on 8 of the 14 factors compared between the two stocks.
About Semtech
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Semtech Corp. engages in the manufacture and supply of analog and mixed signal semiconductor products for high-end consumer, enterprise computing, communications, and industrial equipment. The firm operates through the following business segments: Protection, Signal Integrity, and Wireless & Sensing. It offers signal integrity, protection, wireless and sensing, and power and high-reliability products. The company was founded in 1960 and is headquartered in Camarillo, CA.
About First Solar
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First Solar, Inc. engages in designing, manufacturing, marketing, and the distribution of photovoltaic solar power systems and solar modules. It operates through the Modules and Systems segments. The Modules segment involves the design, manufacture, and sale of cadmium telluride solar modules, which convert sunlight into electricity. The Systems segment offers development, construction, operation, and maintenance of photovoltaic solar power systems. The company was founded by Michael J. Ahearn in 1999 and is headquartered in Tempe, AZ.
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