Sumco (OTCMKTS:SUMCF – Get Free Report) and First Solar (NASDAQ:FSLR – Get Free Report) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Profitability
This table compares Sumco and First Solar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sumco | N/A | N/A | N/A |
| First Solar | 32.47% | 18.02% | 13.05% |
Valuation and Earnings
This table compares Sumco and First Solar”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sumco | N/A | N/A | N/A | $14.15 | 1.50 |
| First Solar | $5.22 billion | 4.21 | $1.53 billion | $16.22 | 12.61 |
First Solar has higher revenue and earnings than Sumco. Sumco is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Sumco and First Solar, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sumco | 0 | 0 | 0 | 0 | 0.00 |
| First Solar | 2 | 12 | 21 | 1 | 2.58 |
First Solar has a consensus price target of $266.27, suggesting a potential upside of 30.23%. Given First Solar’s stronger consensus rating and higher probable upside, analysts clearly believe First Solar is more favorable than Sumco.
Insider & Institutional Ownership
17.5% of Sumco shares are owned by institutional investors. Comparatively, 92.1% of First Solar shares are owned by institutional investors. 0.4% of First Solar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
First Solar beats Sumco on 12 of the 12 factors compared between the two stocks.
About Sumco
Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.
About First Solar
First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.
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