Comprehensive Stock Comparison
Compare GLOBALFOUNDRIES Inc. (GFS) vs Tower Semiconductor Ltd. (TSEM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | TSEM | 9.1% revenue growth vs GFS's 0.6% |
| Value | GFS | Lower P/E (25.8x vs 41.9x) |
| Quality / Margins | TSEM | 14.1% net margin vs GFS's 13.0% |
| Stability / Safety | GFS | Beta 1.60 vs TSEM's 1.73 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | TSEM | +193.8% vs GFS's +22.6% |
| Efficiency (ROA) | TSEM | 6.6% ROA vs GFS's 5.2%, ROIC 5.4% vs 5.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
GLOBALFOUNDRIES is a semiconductor foundry that manufactures integrated circuits for other companies rather than designing its own chips. It generates revenue primarily from wafer fabrication services — including specialty technologies for automotive, IoT, and communications applications — with contract manufacturing fees from customers like AMD, Qualcomm, and Broadcom. Its competitive advantage lies in being one of the few pure-play foundries with advanced specialty process technologies, particularly in RF, analog, and power semiconductors where it avoids direct competition with TSMC and Samsung in leading-edge nodes.
Tower Semiconductor is an independent specialty semiconductor foundry that manufactures analog-intensive mixed-signal chips for customers who design but don't fabricate their own semiconductors. It generates revenue primarily from wafer fabrication services—charging customers for manufacturing their chip designs—with additional income from design enablement and process development services. The company's competitive advantage lies in its specialized expertise in analog and mixed-signal technologies—a niche where larger foundries often don't compete—and its long-term partnerships with customers in automotive, industrial, and medical markets.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
GFS leads in 2 of 6 categories (Valuation Metrics, Risk & Volatility). TSEM leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Financial Metrics (TTM)
GFS is the larger business by revenue, generating $6.8B annually — 4.3x TSEM's $1.6B. Profitability is closely matched — net margins range from 14.1% (TSEM) to 13.0% (GFS). On growth, TSEM holds the edge at +13.7% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | GFSGLOBALFOUNDRIES I… | TSEMTower Semiconduct… |
|---|---|---|
| RevenueTrailing 12 months | $6.8B | $1.6B |
| EBITDAEarnings before interest/tax | $2.1B | $496M |
| Net IncomeAfter-tax profit | $885M | $220M |
| Free Cash FlowCash after capex | $1.0B | -$41M |
| Gross MarginGross profit ÷ Revenue | +25.2% | +23.2% |
| Operating MarginEBIT ÷ Revenue | +11.7% | +12.4% |
| Net MarginNet income ÷ Revenue | +13.0% | +14.1% |
| FCF MarginFCF ÷ Revenue | +14.9% | -2.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | 0.0% | +13.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +127.3% | +42.9% |
Valuation Metrics
At 29.9x trailing earnings, GFS trades at a 54% valuation discount to TSEM's 64.4x P/E. On an enterprise value basis, GFS's 12.4x EV/EBITDA is more attractive than TSEM's 28.1x.
| Metric | GFSGLOBALFOUNDRIES I… | TSEMTower Semiconduct… |
|---|---|---|
| Market CapShares × price | $26.4B | $14.0B |
| Enterprise ValueMkt cap + debt − cash | $26.3B | $14.0B |
| Trailing P/EPrice ÷ TTM EPS | 29.91x | 64.37x |
| Forward P/EPrice ÷ next-FY EPS est. | 25.83x | 41.89x |
| PEG RatioP/E ÷ EPS growth rate | — | 3.12x |
| EV / EBITDAEnterprise value multiple | 12.44x | 28.09x |
| Price / SalesMarket cap ÷ Revenue | 3.89x | 8.97x |
| Price / BookPrice ÷ Book value/share | 2.21x | 4.88x |
| Price / FCFMarket cap ÷ FCF | 26.19x | — |
Profitability & Efficiency
TSEM delivers a 7.6% return on equity — every $100 of shareholder capital generates $8 in annual profit, vs $7 for GFS. TSEM carries lower financial leverage with a 0.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to GFS's 0.14x. On the Piotroski fundamental quality scale (0–9), GFS scores 7/9 vs TSEM's 6/9, reflecting strong financial health.
| Metric | GFSGLOBALFOUNDRIES I… | TSEMTower Semiconduct… |
|---|---|---|
| ROE (TTM)Return on equity | +7.4% | +7.6% |
| ROA (TTM)Return on assets | +5.2% | +6.6% |
| ROICReturn on invested capital | +5.3% | +5.4% |
| ROCEReturn on capital employed | +5.6% | +6.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.14x | 0.06x |
| Net DebtTotal debt minus cash | -$171M | -$74M |
| Cash & Equiv.Liquid assets | $1.8B | $235M |
| Total DebtShort + long-term debt | $1.6B | $162M |
| Interest CoverageEBIT ÷ Interest expense | — | — |
Total Returns (with DRIP)
A $10,000 investment in TSEM five years ago would be worth $40,754 today (with dividends reinvested), compared to $10,248 for GFS. Over the past 12 months, TSEM leads with a +193.8% total return vs GFS's +22.6%. The 3-year compound annual growth rate (CAGR) favors TSEM at 45.5% vs GFS's -10.1% — a key indicator of consistent wealth creation.
| Metric | GFSGLOBALFOUNDRIES I… | TSEMTower Semiconduct… |
|---|---|---|
| YTD ReturnYear-to-date | +29.0% | +2.6% |
| 1-Year ReturnPast 12 months | +22.6% | +193.8% |
| 3-Year ReturnCumulative with dividends | -27.2% | +207.9% |
| 5-Year ReturnCumulative with dividends | +2.5% | +307.5% |
| 10-Year ReturnCumulative with dividends | +2.5% | +817.5% |
| CAGR (3Y)Annualised 3-year return | -10.1% | +45.5% |
Risk & Volatility
GFS is the less volatile stock with a 1.60 beta — it tends to amplify market swings less than TSEM's 1.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GFS currently trades 93.3% from its 52-week high vs TSEM's 83.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | GFSGLOBALFOUNDRIES I… | TSEMTower Semiconduct… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.60x | 1.73x |
| 52-Week HighHighest price in past year | $50.98 | $149.57 |
| 52-Week LowLowest price in past year | $29.77 | $28.64 |
| % of 52W HighCurrent price vs 52-week peak | +93.3% | +83.5% |
| RSI (14)Momentum oscillator 0–100 | 56.2 | 44.6 |
| Avg Volume (50D)Average daily shares traded | 3.3M | 1.6M |
Analyst Outlook
Wall Street rates GFS as "Buy" and TSEM as "Buy". Consensus price targets imply 23.3% upside for TSEM (target: $154) vs 7.5% for GFS (target: $51).
| Metric | GFSGLOBALFOUNDRIES I… | TSEMTower Semiconduct… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $51.14 | $154.00 |
| # AnalystsCovering analysts | 19 | 14 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 2 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Oct 21 | Feb 26 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | 100 | 90.91 | -9.1% |
| Tower Semiconductor… (TSEM) | 100 | 409.97 | +310.0% |
Tower Semiconductor… (TSEM) returned +308% over 5 years vs GLOBALFOUNDRIES Inc. (GFS)'s +2%. A $10,000 investment in TSEM 5 years ago would be worth $40,754 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | $5.8B | $6.8B | +16.8% |
| Tower Semiconductor… (TSEM) | $1.2B | $1.6B | +25.3% |
Tower Semiconductor Ltd.'s revenue grew from $1.2B (2016) to $1.6B (2025) — a 2.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | -23.6% | 13.0% | +155.2% |
| Tower Semiconductor… (TSEM) | 16.3% | 14.1% | -13.7% |
Tower Semiconductor Ltd.'s net margin went from 16% (2016) to 14% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | 20.6 | 22 | +6.8% |
| Tower Semiconductor… (TSEM) | 11.8 | 60.5 | +412.7% |
GLOBALFOUNDRIES Inc. has traded in a 21x–33x P/E range over 3 years; current trailing P/E is ~30x. Tower Semiconductor Ltd. has traded in a 7x–61x P/E range over 9 years; current trailing P/E is ~64x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| GLOBALFOUNDRIES Inc. (GFS) | -2.66 | 1.59 | +159.8% |
| Tower Semiconductor… (TSEM) | 2.09 | 1.94 | -7.2% |
Tower Semiconductor Ltd.'s EPS grew from $2.09 (2016) to $1.94 (2025) — a -1% CAGR.
Chart 6Free Cash Flow — 5 Years
GLOBALFOUNDRIES Inc. generated $1B FCF in 2025 (-6% vs 2021). Tower Semiconductor Ltd. generated $-41M FCF in 2025 (-138% vs 2021).
GFS vs TSEM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is GFS or TSEM a better buy right now?
GLOBALFOUNDRIES Inc. (GFS) offers the better valuation at 29.9x trailing P/E (25.8x forward), making it the more compelling value choice. Analysts rate GLOBALFOUNDRIES Inc. (GFS) a "Buy" — based on 19 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — GFS or TSEM?
On trailing P/E, GLOBALFOUNDRIES Inc. (GFS) is the cheapest at 29.9x versus Tower Semiconductor Ltd. at 64.4x. On forward P/E, GLOBALFOUNDRIES Inc. is actually cheaper at 25.8x.
03Which is the better long-term investment — GFS or TSEM?
Over the past 5 years, Tower Semiconductor Ltd. (TSEM) delivered a total return of +307.5%, compared to +2.5% for GLOBALFOUNDRIES Inc. (GFS). A $10,000 investment in TSEM five years ago would be worth approximately $41K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TSEM returned +817.5% versus GFS's +2.5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — GFS or TSEM?
By beta (market sensitivity over 5 years), GLOBALFOUNDRIES Inc. (GFS) is the lower-risk stock at 1.60β versus Tower Semiconductor Ltd.'s 1.73β — meaning TSEM is approximately 8% more volatile than GFS relative to the S&P 500. On balance sheet safety, Tower Semiconductor Ltd. (TSEM) carries a lower debt/equity ratio of 6% versus 14% for GLOBALFOUNDRIES Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — GFS or TSEM?
Tower Semiconductor Ltd. (TSEM) is the more profitable company, earning 14.1% net margin versus 13.0% for GLOBALFOUNDRIES Inc. — meaning it keeps 14.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TSEM leads at 12.4% versus 11.7% for GFS. At the gross margin level — before operating expenses — GFS leads at 25.2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is GFS or TSEM more undervalued right now?
On forward earnings alone, GLOBALFOUNDRIES Inc. (GFS) trades at 25.8x forward P/E versus 41.9x for Tower Semiconductor Ltd. — 16.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSEM: 23.3% to $154.00.
07Which pays a better dividend — GFS or TSEM?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is GFS or TSEM better for a retirement portfolio?
For long-horizon retirement investors, Tower Semiconductor Ltd. (TSEM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+817.5% 10Y return). GLOBALFOUNDRIES Inc. (GFS) carries a higher beta of 1.60 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TSEM: +817.5%, GFS: +2.5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between GFS and TSEM?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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