Tower Semiconductor (NASDAQ:TSEM) and Alimco Financial (OTCMKTS:ALMC) Financial Review

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

Institutional & Insider Ownership

70.5% of Tower Semiconductor shares are held by institutional investors. Comparatively, 0.2% of Alimco Financial shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by company insiders. Comparatively, 35.1% of Alimco Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tower Semiconductor and Alimco Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tower Semiconductor	0	0	3	0	3.00
Alimco Financial	0	0	0	0	N/A

Tower Semiconductor presently has a consensus price target of $46.33, suggesting a potential upside of 17.06%. Given Tower Semiconductor’s higher possible upside, research analysts plainly believe Tower Semiconductor is more favorable than Alimco Financial.

Valuation & Earnings

This table compares Tower Semiconductor and Alimco Financial’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	$1.42 billion	3.04	$518.49 million	$4.41	8.98
Alimco Financial	N/A	N/A	N/A	N/A	N/A

Tower Semiconductor has higher revenue and earnings than Alimco Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tower Semiconductor	35.27%	8.78%	7.21%
Alimco Financial	N/A	N/A	N/A

Volatility and Risk

Tower Semiconductor has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Alimco Financial has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Summary

Tower Semiconductor beats Alimco Financial on 8 of the 9 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 Alimco Financial

Alimco Financial Corporation focuses on business financing solutions. The company was formerly known as Alliance Semiconductor Corporation and changed its name to Alimco Financial Corporation in 2017. Alimco Financial Corporation was founded in 1985 and is based in West Palm Beach, Florida.