SiTime Corporation (SITM) vs Tower Semiconductor Ltd. (TSEM)

SiTime Corporation and Tower Semiconductor Ltd. are both Semiconductors companies. Tower Semiconductor Ltd. is the larger, with a market value of $14.9B against $10.7B — 1.4× the size. Tower Semiconductor Ltd. trades at the lower P/E: 42.5× against 366×. SiTime Corporation grew revenue faster over the last twelve months: 142.6% against 21.6%. Tower Semiconductor Ltd. has the higher net margin (19.4% vs 3.87%) and the higher return on invested capital (11.7% vs 0.08%). Across the 22 metrics below, Tower Semiconductor Ltd. leads on 14 and SiTime Corporation on 8.

Valuation

Metric SITM TSEM Semiconductors median
P/E 366.06 42.53 36.98
P/S 15.83 8.25 6.03
P/B 3.09 4.94 3.87
Price to free cash flow 272.95 47.75 43.80
EV/EBITDA 334.51 23.20 20.84
EV/Sales 15.00 7.53 5.07
Earnings yield 0.27% 2.35% 1.13%
Free cash flow yield 0.37% 2.09% 1.06%

Profitability

Metric SITM TSEM Semiconductors median
Gross margin 56.24% 29.62% 52.21%
Operating margin 0.87% 19.17% 5.47%
Net margin 3.87% 19.36% 4.26%
Free cash flow margin 5.80% 0.00% 5.02%
Return on equity 1.15% 0.00% 2.86%
Return on assets 0.85% 9.80% 2.03%
Return on invested capital 0.08% 11.67% 2.28%

Growth

Metric SITM TSEM Semiconductors median
Revenue growth (TTM) 142.62% 21.61% 17.60%
EPS growth (last fiscal year) 57.53% 4.86% 27.66%
Revenue growth, 5-year CAGR 22.97% 4.35% 5.14%
Net income growth, 5-year CAGR 0.00% 21.78% 0.00%

Health

Metric SITM TSEM Semiconductors median
Debt to equity 0.38 0.05 0.12
Current ratio 5.56 3.72 3.39
Net debt to EBITDA 30.18 (1.99) 0.53

Dividend

Metric SITM TSEM Semiconductors median
Dividend yield — — 1.62%
Payout ratio — — 0.38

Size

Metric SITM TSEM Semiconductors median
Market cap 10.68b 14.87b 5.69b

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