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Analyzing Tower Semiconductor (NASDAQ:TSEM) and Netlist (NASDAQ:NLST)

Defense World ·  Aug 23, 2022 02:22

Tower Semiconductor (NASDAQ:TSEM – Get Rating) and Netlist (NASDAQ:NLST – 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 valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares Tower Semiconductor and Netlist's net margins, return on equity and return on assets.

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Net Margins Return on Equity Return on Assets
Tower Semiconductor 12.33% 12.57% 9.13%
Netlist -17.64% -59.49% -31.47%

Volatility and Risk

Tower Semiconductor has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Netlist has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tower Semiconductor and Netlist, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tower Semiconductor 0 3 0 0 2.00
Netlist 0 0 0 0 N/A

Tower Semiconductor currently has a consensus target price of $47.00, suggesting a potential upside of 1.58%. Given Tower Semiconductor's higher possible upside, equities analysts clearly believe Tower Semiconductor is more favorable than Netlist.

Valuation and Earnings

This table compares Tower Semiconductor and Netlist's revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tower Semiconductor $1.51 billion 3.28 $150.01 million $1.85 25.01
Netlist $142.35 million 4.93 $4.83 million ($0.14) -21.64

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

Institutional and Insider Ownership

0.0% of Netlist shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 3.8% of Netlist shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Tower Semiconductor beats Netlist on 8 of the 12 factors compared between the two stocks.

About Tower Semiconductor

(Get Rating)

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, other Asia countries, and Europe. 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 offers wafer fabrication services and design enablement platform for 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 Netlist

(Get Rating)

Netlist, Inc. designs, manufactures, and markets memory subsystems for the server, high-performance computing, and communications markets in the United States and internationally. It offers HybriDIMM, a storage class memory product, which unifies dynamic random-access memory (DRAM) and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as NVvault DDR4 NVDIMM that provides data acceleration and protection in a joint electron device engineering council standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. It resells component products, including solid state drive (SSDs), NAND flash, and DRAM products to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products through a direct sales force and a network of independent sales representatives. Netlist, Inc. was incorporated in 2000 and is headquartered in Irvine, California.

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