Alimco Financial (OTCMKTS:ALMC) and Tower Semiconductor (NASDAQ:TSEM) Critical Analysis

Alimco Financial (OTCMKTS:ALMC) and Tower Semiconductor (NASDAQ:TSEM) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alimco Financial	N/A	N/A	N/A
Tower Semiconductor	35.27%	8.78%	7.21%

Institutional & Insider Ownership

0.2% of Alimco Financial shares are owned by institutional investors. Comparatively, 70.5% of Tower Semiconductor shares are owned by institutional investors. 35.1% of Alimco Financial shares are owned by insiders. Comparatively, 1.0% of Tower Semiconductor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Alimco Financial has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Alimco Financial and Tower Semiconductor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alimco Financial	0	0	0	0	N/A
Tower Semiconductor	0	0	3	0	3.00

Tower Semiconductor has a consensus target price of $46.33, indicating a potential upside of 17.39%. Given Tower Semiconductor’s higher possible upside, analysts clearly believe Tower Semiconductor is more favorable than Alimco Financial.

Valuation and Earnings

This table compares Alimco Financial and Tower Semiconductor’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alimco Financial	N/A	N/A	N/A	N/A	N/A
Tower Semiconductor	$1.42 billion	3.03	$518.49 million	$4.41	8.95

Tower Semiconductor has higher revenue and earnings than Alimco Financial.

Summary

Tower Semiconductor beats Alimco Financial on 8 of the 9 factors compared between the two stocks.

About Alimco Financial

Alimco Financial Corporation focuses on business financing solutions. The company was formerly known as Alliance Semiconductor Corporation and changed its name to Alimco Financial Corporation in 2017. Alimco Financial Corporation was founded in 1985 and is based in West Palm Beach, Florida.

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.