GlobalFoundries Inc. (GFS) vs Tower Semiconductor Ltd. (TSEM)

GlobalFoundries Inc. and Tower Semiconductor Ltd. are both Semiconductors companies. GlobalFoundries Inc. is the larger, with a market value of $20.0B against $14.9B — 1.3× the size. Tower Semiconductor Ltd. trades at the lower P/E: 43.6× against 107×. Tower Semiconductor Ltd. grew revenue faster over the last twelve months: 21.6% against 5.27%. Tower Semiconductor Ltd. has the higher net margin (19.4% vs 2.76%) and the higher return on invested capital (11.7% vs 4.60%). Across the 22 metrics below, Tower Semiconductor Ltd. leads on 14 and GlobalFoundries Inc. on 8.

Valuation

Metric GFS TSEM Semiconductors median
P/E 106.89 43.58 40.58
P/S 2.97 8.45 6.53
P/B 1.77 5.06 4.63
Price to free cash flow 66.26 48.92 50.51
EV/EBITDA 9.95 23.83 22.09
EV/Sales 2.88 7.73 5.41
Earnings yield 0.94% 2.29% 0.94%
Free cash flow yield 1.51% 2.04% 1.01%

Profitability

Metric GFS TSEM Semiconductors median
Gross margin 28.47% 29.62% 52.12%
Operating margin 11.74% 19.17% 7.30%
Net margin 2.76% 19.36% 3.87%
Free cash flow margin 7.22% 0.00% 3.33%
Return on equity 1.66% 0.00% 1.15%
Return on assets 1.17% 9.80% 2.03%
Return on invested capital 4.60% 11.67% 2.66%

Growth

Metric GFS TSEM Semiconductors median
Revenue growth (TTM) 5.27% 21.61% 17.60%
EPS growth (last fiscal year) 431.25% 4.86% 27.88%
Revenue growth, 5-year CAGR 6.96% 4.35% 5.14%
Net income growth, 5-year CAGR 0.00% 21.78% 0.00%

Health

Metric GFS TSEM Semiconductors median
Debt to equity 0.14 0.05 0.13
Current ratio 2.58 3.72 3.35
Net debt to EBITDA (0.68) (1.99) 0.58

Dividend

Metric GFS TSEM Semiconductors median
Dividend yield 0.62% — 1.58%
Payout ratio 0.69 — 0.38

Size

Metric GFS TSEM Semiconductors median
Market cap 19.95b 14.87b 4.99b

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