Rogers (NYSE:ROG) versus Tower Semiconductor (TSEM) Critical Contrast

Rogers (NYSE: ROG) and Tower Semiconductor (NASDAQ:TSEM) are both mid-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, dividends, earnings and risk.

Earnings and Valuation

This table compares Rogers and Tower Semiconductor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rogers $656.31 million 4.68 $48.28 million $4.62 36.46
Tower Semiconductor $1.25 billion 2.74 $203.92 million $1.82 19.11

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Rogers and Tower Semiconductor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rogers 0 0 5 0 3.00
Tower Semiconductor 0 0 3 1 3.25

Rogers currently has a consensus target price of $161.67, indicating a potential downside of 4.03%. Tower Semiconductor has a consensus target price of $43.75, indicating a potential upside of 25.79%. Given Tower Semiconductor’s stronger consensus rating and higher probable upside, analysts clearly believe Tower Semiconductor is more favorable than Rogers.

Risk and Volatility

Rogers has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

93.2% of Rogers shares are held by institutional investors. Comparatively, 44.0% of Tower Semiconductor shares are held by institutional investors. 1.5% of Rogers shares are held by company insiders. Comparatively, 1.0% of Tower Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Rogers 10.88% 14.22% 9.13%
Tower Semiconductor 14.53% 27.82% 14.80%

Summary

Tower Semiconductor beats Rogers on 8 of the 15 factors compared between the two stocks.

About Rogers

Rogers Corporation manufactures and sells engineered materials and components for mission critical applications. The Company’s segments are Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS), Power Electronics Solutions (PES) and Other. The ACS segment manufactures and sells circuit materials and solutions for applications in wireless communications infrastructure, automotive, connected devices, consumer electronics and aerospace/defense. The EMS segment manufactures and sells elastomeric material solutions for critical cushioning, sealing, impact protection and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, construction and printing applications. The PES segment manufactures and sells ceramic substrate materials for power module applications, laminated bus bars for power inverter and interconnect applications, and micro-channel coolers. Its other business consists of elastomeric components.

About Tower Semiconductor

Tower Semiconductor Ltd. operates as an independent semiconductor foundry focused primarily on specialty process technologies. The Company focuses on producing integrated circuits (ICs) based on the design specifications of its customers. The Company manufactures semiconductors for its customers primarily based on third-party designs. It offers process manufacture geometries of 0.35, 0.50, 0.55, 0.60, 0.80-micron and above on 150 millimeter wafers, 0.35, 0.18. 0.16, 0.13 and 0.11-micron on 200 millimeter wafers, and 65 nanometer and 45 nanometer on 300 millimeter wafers. It also provides design support and technical services. The Company’s ICs are incorporated into a range of products in markets, including consumer electronics, personal computers, communications, automotive, industrial and medical device products. The Company has manufacturing facilities in the United States, Israel and Japan.

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