Tower Semiconductor (TSEM) versus Freescale Semiconductor (FSL) Critical Comparison

Tower Semiconductor (NASDAQ: TSEM) and Freescale Semiconductor (NYSE:FSL) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tower Semiconductor $1.39 billion 2.09 $298.01 million $2.40 12.28
Freescale Semiconductor N/A N/A N/A $1.06 34.50

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Tower Semiconductor and Freescale Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tower Semiconductor 0 0 3 1 3.25
Freescale Semiconductor 0 0 0 0 N/A

Tower Semiconductor currently has a consensus target price of $43.75, suggesting a potential upside of 48.51%. Given Tower Semiconductor’s higher probable upside, research analysts clearly believe Tower Semiconductor is more favorable than Freescale Semiconductor.


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

Net Margins Return on Equity Return on Assets
Tower Semiconductor 21.48% 26.17% 14.74%
Freescale Semiconductor 7.14% N/A 10.15%

Insider & Institutional Ownership

47.7% of Tower Semiconductor shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.


Tower Semiconductor beats Freescale Semiconductor on 10 of the 11 factors compared between the two stocks.

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.

About Freescale Semiconductor

Freescale Semiconductor, Ltd. is a United States-based company, which provides microcontrollers and digital networking processors. The Company offers its product under various categories, including advanced reduced instruction set computer (RISC) machines (ARM) processors, such as QorIQ multicore processors; Power Architecture processors, such as integrated host processors; more processors, such as crypto coprocessors; analog and power management, such as drivers and switches; radio frequency (RF), such as digital front end processors; sensors, such as intelligent sensors and sensor hubs; wireless connectivity, and programs and technologies. The Company offers various applications, including basic rear view camera, EtherCAT, portable navigation devices, access and remote control, human machine interface (HMI), blood glucose monitors, and gas and water meter. Its software’s and tools include run-time software, software development tools and hardware development tools, among others.

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