First Solar (NASDAQ:FSLR) versus United Microelectronics (NYSE:UMC) Financial Contrast

First Solar (NASDAQ:FSLR) and United Microelectronics (NYSE:UMC) are both large-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Risk and Volatility

First Solar has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, United Microelectronics has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for First Solar and United Microelectronics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	0	4	21	0	2.84
United Microelectronics	0	2	1	0	2.33

First Solar currently has a consensus price target of $267.52, suggesting a potential upside of 18.66%. United Microelectronics has a consensus price target of $8.90, suggesting a potential upside of 1.60%. Given First Solar’s stronger consensus rating and higher probable upside, research analysts clearly believe First Solar is more favorable than United Microelectronics.

Profitability

This table compares First Solar and United Microelectronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	28.75%	16.24%	10.61%
United Microelectronics	24.79%	15.60%	9.85%

Earnings & Valuation

This table compares First Solar and United Microelectronics’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$3.32 billion	7.27	$830.78 million	$9.54	23.63
United Microelectronics	$7.25 billion	3.03	$1.95 billion	$0.70	12.51

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

Insider and Institutional Ownership

92.1% of First Solar shares are owned by institutional investors. Comparatively, 5.1% of United Microelectronics shares are owned by institutional investors. 0.6% of First Solar shares are owned by insiders. Comparatively, 8.0% of United Microelectronics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

First Solar beats United Microelectronics on 11 of the 14 factors compared between the two stocks.

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.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.