Comprehensive Stock Comparison
Compare Tower Semiconductor Ltd. (TSEM) vs Apple Inc. (AAPL) 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 AAPL's 6.4% |
| Value | AAPL | Lower P/E (31.1x vs 41.9x), PEG 1.74 vs 2.03 |
| Quality / Margins | AAPL | 27.0% net margin vs TSEM's 14.1% |
| Stability / Safety | AAPL | Beta 1.28 vs TSEM's 1.73 |
| Dividends | AAPL | 0.4% yield; 14-year raise streak; TSEM pays no meaningful dividend |
| Momentum (1Y) | TSEM | +193.8% vs AAPL's +9.7% |
| Efficiency (ROA) | AAPL | 31.1% ROA vs TSEM's 6.6%, ROIC 64.5% vs 5.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
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.
Apple is a technology giant that designs and sells premium consumer electronics — most famously the iPhone — along with related software and services. It generates revenue primarily from hardware sales (roughly 80% of total) and a fast-growing services segment (around 20%) that includes the App Store, subscriptions, and licensing. Its key competitive advantage is a powerful ecosystem that locks users into its hardware, software, and services through seamless integration and high switching costs.
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
AAPL leads in 5 of 6 categories (Financial Metrics, Valuation Metrics). TSEM leads in 1 (Total Returns).
Financial Metrics (TTM)
AAPL is the larger business by revenue, generating $435.6B annually — 278.2x TSEM's $1.6B. AAPL is the more profitable business, keeping 27.0% of every revenue dollar as net income compared to TSEM's 14.1%.
| Metric | TSEMTower Semiconduct… | AAPLApple Inc. |
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $435.6B |
| EBITDAEarnings before interest/tax | $496M | $152.9B |
| Net IncomeAfter-tax profit | $220M | $117.8B |
| Free Cash FlowCash after capex | -$41M | $123.3B |
| Gross MarginGross profit ÷ Revenue | +23.2% | +47.3% |
| Operating MarginEBIT ÷ Revenue | +12.4% | +32.4% |
| Net MarginNet income ÷ Revenue | +14.1% | +27.0% |
| FCF MarginFCF ÷ Revenue | -2.6% | +28.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.7% | +15.7% |
| EPS Growth (YoY)Latest quarter vs prior year | +42.9% | +18.3% |
Valuation Metrics
At 35.4x trailing earnings, AAPL trades at a 45% valuation discount to TSEM's 64.4x P/E. Adjusting for growth (PEG ratio), AAPL offers better value at 1.98x vs TSEM's 3.12x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | TSEMTower Semiconduct… | AAPLApple Inc. |
|---|---|---|
| Market CapShares × price | $14.0B | $3.88T |
| Enterprise ValueMkt cap + debt − cash | $14.0B | $3.97T |
| Trailing P/EPrice ÷ TTM EPS | 64.37x | 35.41x |
| Forward P/EPrice ÷ next-FY EPS est. | 41.89x | 31.15x |
| PEG RatioP/E ÷ EPS growth rate | 3.12x | 1.98x |
| EV / EBITDAEnterprise value multiple | 28.09x | 27.45x |
| Price / SalesMarket cap ÷ Revenue | 8.97x | 9.33x |
| Price / BookPrice ÷ Book value/share | 4.88x | 53.76x |
| Price / FCFMarket cap ÷ FCF | — | 39.33x |
Profitability & Efficiency
AAPL delivers a 133.5% return on equity — every $100 of shareholder capital generates $134 in annual profit, vs $8 for TSEM. TSEM carries lower financial leverage with a 0.06x debt-to-equity ratio, signaling a more conservative balance sheet compared to AAPL's 1.67x. On the Piotroski fundamental quality scale (0–9), AAPL scores 7/9 vs TSEM's 6/9, reflecting strong financial health.
| Metric | TSEMTower Semiconduct… | AAPLApple Inc. |
|---|---|---|
| ROE (TTM)Return on equity | +7.6% | +133.5% |
| ROA (TTM)Return on assets | +6.6% | +31.1% |
| ROICReturn on invested capital | +5.4% | +64.5% |
| ROCEReturn on capital employed | +6.6% | +69.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.06x | 1.67x |
| Net DebtTotal debt minus cash | -$74M | $89.7B |
| Cash & Equiv.Liquid assets | $235M | $33.5B |
| Total DebtShort + long-term debt | $162M | $123.3B |
| 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 $21,049 for AAPL. Over the past 12 months, TSEM leads with a +193.8% total return vs AAPL's +9.7%. The 3-year compound annual growth rate (CAGR) favors TSEM at 45.5% vs AAPL's 21.9% — a key indicator of consistent wealth creation.
| Metric | TSEMTower Semiconduct… | AAPLApple Inc. |
|---|---|---|
| YTD ReturnYear-to-date | +2.6% | -2.4% |
| 1-Year ReturnPast 12 months | +193.8% | +9.7% |
| 3-Year ReturnCumulative with dividends | +207.9% | +81.2% |
| 5-Year ReturnCumulative with dividends | +307.5% | +110.5% |
| 10-Year ReturnCumulative with dividends | +817.5% | +1027.4% |
| CAGR (3Y)Annualised 3-year return | +45.5% | +21.9% |
Risk & Volatility
AAPL is the less volatile stock with a 1.28 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. AAPL currently trades 91.5% from its 52-week high vs TSEM's 83.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | TSEMTower Semiconduct… | AAPLApple Inc. |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.73x | 1.28x |
| 52-Week HighHighest price in past year | $149.57 | $288.61 |
| 52-Week LowLowest price in past year | $28.64 | $169.21 |
| % of 52W HighCurrent price vs 52-week peak | +83.5% | +91.5% |
| RSI (14)Momentum oscillator 0–100 | 44.6 | 57.5 |
| Avg Volume (50D)Average daily shares traded | 1.6M | 40.9M |
Analyst Outlook
Wall Street rates TSEM as "Buy" and AAPL as "Buy". Consensus price targets imply 23.3% upside for TSEM (target: $154) vs 14.7% for AAPL (target: $303). AAPL is the only dividend payer here at 0.39% yield — a key consideration for income-focused portfolios.
| Metric | TSEMTower Semiconduct… | AAPLApple Inc. |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $154.00 | $303.11 |
| # AnalystsCovering analysts | 14 | 109 |
| Dividend YieldAnnual dividend ÷ price | — | +0.4% |
| Dividend StreakConsecutive years of raises | 2 | 14 |
| Dividend / ShareAnnual DPS | — | $1.03 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +2.3% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 100 | 673.01 | +573.0% |
| Apple Inc. (AAPL) | 100 | 361.46 | +261.5% |
Tower Semiconductor… (TSEM) returned +308% over 5 years vs Apple Inc. (AAPL)'s +110%. 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 |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | $1.2B | $1.6B | +25.3% |
| Apple Inc. (AAPL) | $215.6B | $416.2B | +93.0% |
Tower Semiconductor Ltd.'s revenue grew from $1.2B (2016) to $1.6B (2025) — a 2.5% CAGR. Apple Inc.'s revenue grew from $215.6B (2016) to $416.2B (2025) — a 7.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 16.3% | 14.1% | -13.7% |
| Apple Inc. (AAPL) | 21.2% | 26.9% | +27.0% |
Tower Semiconductor Ltd.'s net margin went from 16% (2016) to 14% (2025). Apple Inc.'s net margin went from 21% (2016) to 27% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 11.8 | 60.5 | +412.7% |
| Apple Inc. (AAPL) | 18.4 | 36.4 | +97.8% |
Tower Semiconductor Ltd. has traded in a 7x–61x P/E range over 9 years; current trailing P/E is ~64x. Apple Inc. has traded in a 13x–41x P/E range over 9 years; current trailing P/E is ~35x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 2.09 | 1.94 | -7.2% |
| Apple Inc. (AAPL) | 2.08 | 7.46 | +258.7% |
Tower Semiconductor Ltd.'s EPS grew from $2.09 (2016) to $1.94 (2025) — a -1% CAGR. Apple Inc.'s EPS grew from $2.08 (2016) to $7.46 (2025) — a 15% CAGR.
Chart 6Free Cash Flow — 5 Years
Tower Semiconductor Ltd. generated $-41M FCF in 2025 (-138% vs 2021). Apple Inc. generated $99B FCF in 2025 (+6% vs 2021).
TSEM vs AAPL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TSEM or AAPL a better buy right now?
Apple Inc. (AAPL) offers the better valuation at 35.4x trailing P/E (31.1x forward), making it the more compelling value choice. Analysts rate Tower Semiconductor Ltd. (TSEM) a "Buy" — based on 14 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 — TSEM or AAPL?
On trailing P/E, Apple Inc. (AAPL) is the cheapest at 35.4x versus Tower Semiconductor Ltd. at 64.4x. On forward P/E, Apple Inc. is actually cheaper at 31.1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Apple Inc. wins at 1.74x versus Tower Semiconductor Ltd.'s 2.03x — a reasonable growth-adjusted valuation.
03Which is the better long-term investment — TSEM or AAPL?
Over the past 5 years, Tower Semiconductor Ltd. (TSEM) delivered a total return of +307.5%, compared to +110.5% for Apple Inc. (AAPL). 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: AAPL returned +1027% versus TSEM's +817.5%. 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 — TSEM or AAPL?
By beta (market sensitivity over 5 years), Apple Inc. (AAPL) is the lower-risk stock at 1.28β versus Tower Semiconductor Ltd.'s 1.73β — meaning TSEM is approximately 35% more volatile than AAPL relative to the S&P 500. On balance sheet safety, Tower Semiconductor Ltd. (TSEM) carries a lower debt/equity ratio of 6% versus 167% for Apple Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TSEM or AAPL?
Apple Inc. (AAPL) is the more profitable company, earning 26.9% net margin versus 14.1% for Tower Semiconductor Ltd. — meaning it keeps 26.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AAPL leads at 32.0% versus 12.4% for TSEM. At the gross margin level — before operating expenses — AAPL leads at 46.9%, 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 TSEM or AAPL more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Apple Inc. (AAPL) is the more undervalued stock at a PEG of 1.74x versus Tower Semiconductor Ltd.'s 2.03x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Apple Inc. (AAPL) trades at 31.1x forward P/E versus 41.9x for Tower Semiconductor Ltd. — 10.7x 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 — TSEM or AAPL?
In this comparison, AAPL (0.4% yield) pays a dividend. TSEM does not pay a meaningful dividend and should not be held primarily for income.
08Is TSEM or AAPL better for a retirement portfolio?
For long-horizon retirement investors, Apple Inc. (AAPL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.28), +1027% 10Y return). Tower Semiconductor Ltd. (TSEM) carries a higher beta of 1.73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AAPL: +1027%, TSEM: +817.5%), 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 TSEM and AAPL?
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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