Tower Semiconductor (NASDAQ:TSEM) and Synaptics (NASDAQ:SYNA) Head-To-Head Review

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

Valuation & Earnings

This table compares Tower Semiconductor and Synaptics”s gross 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	3.78	$207.86 million	$1.81	27.04
Synaptics	$959.40 million	2.69	$125.60 million	$4.13	16.22

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

Risk and Volatility

Tower Semiconductor has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500.

Profitability

This table compares Tower Semiconductor and Synaptics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	13.86%	7.73%	6.62%
Synaptics	15.90%	3.16%	1.68%

Analyst Recommendations

This is a summary of current recommendations for Tower Semiconductor and Synaptics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	0	4	0	3.00
Synaptics	0	1	6	1	3.00

Tower Semiconductor currently has a consensus price target of $60.00, suggesting a potential upside of 22.60%. Synaptics has a consensus price target of $93.75, suggesting a potential upside of 39.93%. Given Synaptics’ higher probable upside, analysts plainly believe Synaptics is more favorable than Tower Semiconductor.

Institutional and Insider Ownership

70.5% of Tower Semiconductor shares are owned by institutional investors. Comparatively, 99.4% of Synaptics shares are owned by institutional investors. 1.0% of Tower Semiconductor shares are owned by insiders. Comparatively, 1.3% of Synaptics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Synaptics beats Tower Semiconductor on 8 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 Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.