Reviewing Tower Semiconductor (NASDAQ:TSEM) and SEALSQ (NASDAQ:LAES)

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

Volatility & Risk

SEALSQ has a beta of -12.97, meaning that its stock price is 1,397% less volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SEALSQ	N/A	N/A	N/A
Tower Semiconductor	13.20%	7.37%	6.34%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SEALSQ	1	0	0	0	1.00
Tower Semiconductor	0	2	4	0	2.67

Tower Semiconductor has a consensus target price of $67.60, indicating a potential downside of 19.08%. Given Tower Semiconductor’s stronger consensus rating and higher possible upside, analysts plainly believe Tower Semiconductor is more favorable than SEALSQ.

Earnings & Valuation

This table compares SEALSQ and Tower Semiconductor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SEALSQ	$10.98 million	99.44	-$21.20 million	N/A	N/A
Tower Semiconductor	$1.49 billion	6.22	$207.86 million	$1.74	48.01

Tower Semiconductor has higher revenue and earnings than SEALSQ.

Institutional and Insider Ownership

1.3% of SEALSQ shares are held by institutional investors. Comparatively, 70.5% 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 stock is poised for long-term growth.

Summary

Tower Semiconductor beats SEALSQ on 11 of the 12 factors compared between the two stocks.

About SEALSQ

SEALSQ Corp, together with its subsidiaries, designs, develops, and markets semiconductor chips in Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. It offers semiconductors, such as VaultIC secure elements, secure arm platform, and smart card reader chips; identity provisioning services, such as IoT device provisioning and chip provisioning; and managed PKI for IoT solutions and trust services. The company provides device-to-cloud authentication, device attestation for matter, GSMA root certificate, device-to-device authentication, data protection, anti-counterfeiting and brand protection, security access, device ID provisioning, identity lifecycle management, and satellite IoT connectivity solutions. Its products are used in various applications, such as smart energy, smart home, automotive EV charging, consumer IoT, aerospace and military, telecommunications, logistics, medical, luxury, and other industrial applications. SEALSQ Corp was founded in 2022 and is based in Cointrin, Switzerland.

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.