Reviewing First Solar (NASDAQ:FSLR) and SiTime (NASDAQ:SITM)

First Solar (NASDAQ:FSLR) and SiTime (NASDAQ:SITM) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Risk & Volatility

First Solar has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.24, indicating that its share price is 124% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for First Solar and SiTime, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	1	5	24	2	2.84
SiTime	1	0	4	0	2.60

First Solar presently has a consensus target price of $227.94, indicating a potential upside of 37.03%. SiTime has a consensus target price of $215.00, indicating a potential upside of 4.45%. Given First Solar’s stronger consensus rating and higher probable upside, analysts plainly believe First Solar is more favorable than SiTime.

Profitability

This table compares First Solar and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	32.41%	17.56%	11.46%
SiTime	-46.18%	-10.12%	-7.86%

Earnings and Valuation

This table compares First Solar and SiTime”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$4.26 billion	4.19	$830.78 million	$11.76	14.15
SiTime	$229.99 million	21.23	-$93.60 million	($3.80)	-54.17

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

Insider & Institutional Ownership

92.1% of First Solar shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 0.5% of First Solar shares are owned by company insiders. Comparatively, 2.1% of SiTime shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

First Solar beats SiTime on 12 of the 15 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.