Head to Head Survey: Alpha and Omega Semiconductor (NASDAQ:AOSL) & Tower Semiconductor (NASDAQ:TSEM)

Tower Semiconductor (NASDAQ:TSEM) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Risk & Volatility

Tower Semiconductor has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 2.11, meaning that its stock price is 111% more volatile than the S&P 500.

Profitability

This table compares Tower Semiconductor and Alpha and Omega Semiconductor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	13.20%	7.37%	6.34%
Alpha and Omega Semiconductor	-13.93%	-0.83%	-0.66%

Analyst Recommendations

This is a summary of current ratings for Tower Semiconductor and Alpha and Omega Semiconductor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	0	4	0	3.00
Alpha and Omega Semiconductor	0	1	2	0	2.67

Tower Semiconductor presently has a consensus price target of $64.25, indicating a potential upside of 9.23%. Alpha and Omega Semiconductor has a consensus price target of $30.67, indicating a potential upside of 6.59%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tower Semiconductor is more favorable than Alpha and Omega Semiconductor.

Valuation and Earnings

This table compares Tower Semiconductor and Alpha and Omega Semiconductor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tower Semiconductor	$1.44 billion	4.54	$207.86 million	$1.74	33.80
Alpha and Omega Semiconductor	$696.16 million	1.24	-$96.98 million	($3.27)	-8.80

Tower Semiconductor has higher revenue and earnings than Alpha and Omega Semiconductor. Alpha and Omega Semiconductor 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, 79.0% of Alpha and Omega Semiconductor shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 16.9% of Alpha and Omega Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Tower Semiconductor beats Alpha and Omega Semiconductor on 11 of the 14 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 Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications in Hong Kong, China, South Korea, the United States, and internationally. It offers power discrete products, including metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors for use in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics card, game boxes, TVs, AC adapters, power supplies, motor control, power tools, E-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, graphic cards, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers transient voltage suppressors, analog switch, and electromagnetic interference filter for notebooks, desktop PCs, tablets, flat panel displays, TVs, smart phones, and portable electronic devices; and 650V and 1200V SiC MOSFET. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.