Financial Comparison: Tower Semiconductor (NASDAQ:TSEM) and Quantum-Si (NASDAQ:QSI)

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

Earnings and Valuation

This table compares Tower Semiconductor and Quantum-Si”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tower Semiconductor	$1.57 billion	15.42	$220.47 million	$1.93	111.27
Quantum-Si	$2.44 million	92.22	-$101.34 million	($0.52)	-2.00

Tower Semiconductor has higher revenue and earnings than Quantum-Si. Quantum-Si 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 breakdown of recent recommendations for Tower Semiconductor and Quantum-Si, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	3	2	0	2.40
Quantum-Si	1	1	2	0	2.25

Tower Semiconductor presently has a consensus target price of $173.00, suggesting a potential downside of 19.44%. Quantum-Si has a consensus target price of $3.25, suggesting a potential upside of 212.50%. Given Quantum-Si’s higher probable upside, analysts plainly believe Quantum-Si is more favorable than Tower Semiconductor.

Volatility & Risk

Tower Semiconductor has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Quantum-Si has a beta of 3.08, suggesting that its share price is 208% more volatile than the S&P 500.

Institutional and Insider Ownership

70.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 39.9% of Quantum-Si shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by insiders. Comparatively, 22.0% of Quantum-Si shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Tower Semiconductor and Quantum-Si’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	14.08%	7.86%	6.84%
Quantum-Si	-4,160.06%	-43.90%	-39.30%

Summary

Tower Semiconductor beats Quantum-Si 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 Quantum-Si

Quantum-Si incorporated, a life sciences company, engages in the development of single-molecule detection platform to enable Next Generation Protein Sequencing (NGPS). The company's platform is comprised of the Platinum NGPS instrument; the Platinum Analysis Software service; and reagent kits and semiconductor chips for use with its instruments. It is used in protein identification, protein variants, antibody characterization, biomarker identification, and post translational modification analysis applications. The company was founded in 2013 is headquartered in Branford, Connecticut.