NXP Semiconductors (NASDAQ:NXPI) and FTC Solar (NASDAQ:FTCI) Financial Review

FTC Solar (NASDAQ:FTCI) and NXP Semiconductors (NASDAQ:NXPI) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Valuation & Earnings

This table compares FTC Solar and NXP Semiconductors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTC Solar	$77.77 million	0.84	-$50.29 million	($0.39)	-1.33
NXP Semiconductors	$13.11 billion	4.55	$2.80 billion	$10.83	21.54

NXP Semiconductors has higher revenue and earnings than FTC Solar. FTC Solar is trading at a lower price-to-earnings ratio than NXP Semiconductors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FTC Solar and NXP Semiconductors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTC Solar	-63.17%	-75.67%	-37.61%
NXP Semiconductors	21.21%	35.65%	13.51%

Analyst Recommendations

This is a summary of current recommendations and price targets for FTC Solar and NXP Semiconductors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTC Solar	0	5	2	1	2.50
NXP Semiconductors	1	6	12	0	2.58

FTC Solar presently has a consensus target price of $1.11, suggesting a potential upside of 112.91%. NXP Semiconductors has a consensus target price of $294.89, suggesting a potential upside of 26.43%. Given FTC Solar’s higher possible upside, analysts clearly believe FTC Solar is more favorable than NXP Semiconductors.

Volatility & Risk

FTC Solar has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Insider and Institutional Ownership

45.4% of FTC Solar shares are held by institutional investors. Comparatively, 90.5% of NXP Semiconductors shares are held by institutional investors. 23.1% of FTC Solar shares are held by insiders. Comparatively, 0.1% of NXP Semiconductors shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

NXP Semiconductors beats FTC Solar on 11 of the 15 factors compared between the two stocks.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.