Comparing GlobalFoundries (NASDAQ:GFS) & Ichor (NASDAQ:ICHR)

GlobalFoundries (NASDAQ:GFS) and Ichor (NASDAQ:ICHR) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Insider and Institutional Ownership

94.8% of Ichor shares are owned by institutional investors. 1.9% of Ichor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares GlobalFoundries and Ichor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GlobalFoundries	-1.68%	6.55%	4.32%
Ichor	-2.23%	-0.77%	-0.54%

Volatility & Risk

GlobalFoundries has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Ichor has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for GlobalFoundries and Ichor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GlobalFoundries	0	6	6	0	2.50
Ichor	0	3	3	0	2.50

GlobalFoundries presently has a consensus price target of $44.9167, indicating a potential upside of 30.23%. Ichor has a consensus price target of $23.80, indicating a potential upside of 31.06%. Given Ichor’s higher probable upside, analysts clearly believe Ichor is more favorable than GlobalFoundries.

Valuation & Earnings

This table compares GlobalFoundries and Ichor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GlobalFoundries	$6.75 billion	2.83	-$265.00 million	($0.21)	-164.24
Ichor	$849.04 million	0.73	-$20.82 million	($0.61)	-29.77

Ichor has lower revenue, but higher earnings than GlobalFoundries. GlobalFoundries is trading at a lower price-to-earnings ratio than Ichor, indicating that it is currently the more affordable of the two stocks.

Summary

GlobalFoundries beats Ichor on 7 of the 13 factors compared between the two stocks.

About GlobalFoundries

GlobalFoundries Inc., a semiconductor foundry, provides range of mainstream wafer fabrication services and technologies worldwide. It manufactures various semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. GlobalFoundries Inc. has a strategic partnership with Efficient Computer to develop high-performance computer processors. The company was incorporated in 2008 and is headquartered in Malta, New York.

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.