Tower Semiconductor (NASDAQ:TSEM) and Ideal Power (NASDAQ:IPWR) Head to Head Contrast

Tower Semiconductor (NASDAQ:TSEM) and Ideal Power (NASDAQ:IPWR) are both computer and technology 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for Tower Semiconductor and Ideal Power, as reported 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, indicating a potential upside of 22.01%. Ideal Power has a consensus target price of $14.00, indicating a potential upside of 106.79%. Given Ideal Power’s higher probable upside, analysts plainly believe Ideal Power is more favorable than Tower Semiconductor.

Volatility & Risk

Tower Semiconductor has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Ideal Power has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Earnings and Valuation

This table compares Tower Semiconductor and Ideal Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tower Semiconductor	$1.40 billion	3.78	$518.49 million	$1.85	25.84
Ideal Power	$200,000.00	275.88	-$9.95 million	($1.40)	-4.84

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.

Institutional and Insider Ownership

70.5% of Tower Semiconductor shares are held by institutional investors. Comparatively, 16.4% of Ideal Power shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 5.0% of Ideal Power 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.

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.