Ichor (NASDAQ:ICHR – Get Free Report) and Tower Semiconductor (NASDAQ:TSEM – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Risk and Volatility
Ichor has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.
Institutional & Insider Ownership
94.8% of Ichor shares are owned by institutional investors. Comparatively, 70.5% of Tower Semiconductor shares are owned by institutional investors. 1.9% of Ichor shares are owned by insiders. Comparatively, 1.0% of Tower Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Ichor | $849.04 million | 0.73 | -$20.82 million | ($0.61) | -29.43 |
| Tower Semiconductor | $1.44 billion | 3.62 | $207.86 million | $1.74 | 26.94 |
Tower Semiconductor has higher revenue and earnings than Ichor. Ichor is trading at a lower price-to-earnings ratio than Tower Semiconductor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Ichor and Tower Semiconductor, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Ichor | 0 | 3 | 3 | 0 | 2.50 |
| Tower Semiconductor | 0 | 0 | 4 | 0 | 3.00 |
Ichor currently has a consensus price target of $23.80, indicating a potential upside of 32.59%. Tower Semiconductor has a consensus price target of $64.25, indicating a potential upside of 37.08%. Given Tower Semiconductor’s stronger consensus rating and higher probable upside, analysts plainly believe Tower Semiconductor is more favorable than Ichor.
Profitability
This table compares Ichor and Tower Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Ichor | -2.23% | -0.77% | -0.54% |
| Tower Semiconductor | 13.20% | 7.37% | 6.34% |
Summary
Tower Semiconductor beats Ichor on 11 of the 14 factors compared between the two stocks.
About Ichor
Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment in the United States and internationally. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. In addition, it manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products. The company primarily markets its products to equipment OEMs in the semiconductor equipment market in Japan. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.
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.
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