TSEM
Tower Semiconductor Ltd.
Semiconductors
Market Cap$24.39B
5Y Perf.+580.5%
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Stock Comparison
TSEM vs GFS
Revenue, margins, valuation, and 5-year total return — side by side.
GFS
GLOBALFOUNDRIES Inc.
Semiconductors
Market Cap$40.23B
5Y Perf.+48.3%
TSEM vs GFS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | TSEM | GFS |
|---|---|---|
| Industry | Semiconductors | Semiconductors |
| Market Cap | $24.39B | $40.23B |
| Revenue (TTM) | $1.57B | $6.79B |
| Net Income (TTM) | $220M | $885M |
| Gross Margin | 23.2% | 25.2% |
| Operating Margin | 12.4% | 11.7% |
| Forward P/E | 72.5x | 39.2x |
| Total Debt | $162M | $1.64B |
| Cash & Equiv. | $235M | $1.81B |
TSEM vs GFS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
TSEM
GFS
| Stock | Oct 21 | May 26 | Return |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 100 | 680.5 | +580.5% |
| GLOBALFOUNDRIES Inc. (GFS) | 100 | 148.3 | +48.3% |
Price return only. Dividends and distributions are not included.
Quick Verdict: TSEM vs GFS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: TSEM leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. GLOBALFOUNDRIES Inc. is the stronger pick specifically for valuation and capital efficiency and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
TSEM
Tower Semiconductor Ltd.
The Growth Play
TSEM carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 9.1%, EPS growth 4.9%, 3Y rev CAGR -2.3%
- 17.4% 10Y total return vs GFS's 55.8%
- Lower volatility, beta 2.41, Low D/E 5.6%, current ratio 6.48x
Best for: growth exposure and long-term compounding
GFS
GLOBALFOUNDRIES Inc.
The Income Pick
GFS is the clearest fit if your priority is income & stability and defensive.
- beta 1.85
- Beta 1.85, current ratio 2.62x
- Lower P/E (39.2x vs 72.5x)
Best for: income & stability and defensive
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TSEM | 9.1% revenue growth vs GFS's 0.6% |
| Value | GFS | Lower P/E (39.2x vs 72.5x) |
| Quality / Margins | TSEM | 14.1% margin vs GFS's 13.0% |
| Stability / Safety | GFS | Beta 1.85 vs TSEM's 2.41 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | TSEM | +5.0% vs GFS's +107.1% |
| Efficiency (ROA) | TSEM | 6.6% ROA vs GFS's 5.3%, ROIC 5.4% vs 5.3% |
TSEM vs GFS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
FY 2025
TSEM vs GFS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLTSEMLAGGINGGFS
GFSGLOBALFOUNDRIES Inc.
2leads
TSEMTower Semiconductor L…
2leads
6 Total Categories
CATEGORYLEADERvs GFSMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
GFS5/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
TSEM5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
TSEM5/6
Risk & VolatilityBeta, volatility, and downside exposure
GFS2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
Evenly matched — TSEM and GFS each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
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 | TSEMTower Semiconduct… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $6.8B |
| EBITDAEarnings before interest/tax | $496M | $2.1B |
| Net IncomeAfter-tax profit | $220M | $885M |
| Free Cash FlowCash after capex | -$41M | $1.0B |
| Gross MarginGross profit ÷ Revenue | +23.2% | +25.2% |
| Operating MarginEBIT ÷ Revenue | +12.4% | +11.7% |
| Net MarginNet income ÷ Revenue | +14.1% | +13.0% |
| FCF MarginFCF ÷ Revenue | -2.6% | +14.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.7% | 0.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +42.9% | +127.3% |
Evenly matched — TSEM and GFS each lead in 3 of 6 comparable metrics.
Valuation Metrics
GFS leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 45.5x trailing earnings, GFS trades at a 59% valuation discount to TSEM's 111.8x P/E. On an enterprise value basis, GFS's 19.0x EV/EBITDA is more attractive than TSEM's 48.9x.
| Metric | TSEMTower Semiconduct… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| Market CapShares × price | $24.4B | $40.2B |
| Enterprise ValueMkt cap + debt − cash | $24.3B | $40.1B |
| Trailing P/EPrice ÷ TTM EPS | 111.79x | 45.47x |
| Forward P/EPrice ÷ next-FY EPS est. | 72.47x | 39.24x |
| PEG RatioP/E ÷ EPS growth rate | 5.42x | — |
| EV / EBITDAEnterprise value multiple | 48.89x | 18.98x |
| Price / SalesMarket cap ÷ Revenue | 15.57x | 5.92x |
| Price / BookPrice ÷ Book value/share | 8.48x | 3.37x |
| Price / FCFMarket cap ÷ FCF | — | 39.87x |
GFS leads this category, winning 5 of 5 comparable metrics.
Profitability & Efficiency
TSEM leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
GFS delivers a 7.6% return on equity — every $100 of shareholder capital generates $8 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 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 | TSEMTower Semiconduct… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| ROE (TTM)Return on equity | +7.6% | +7.6% |
| ROA (TTM)Return on assets | +6.6% | +5.3% |
| ROICReturn on invested capital | +5.4% | +5.3% |
| ROCEReturn on capital employed | +6.6% | +5.6% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.06x | 0.14x |
| Net DebtTotal debt minus cash | -$74M | -$171M |
| Cash & Equiv.Liquid assets | $235M | $1.8B |
| Total DebtShort + long-term debt | $162M | $1.6B |
| Interest CoverageEBIT ÷ Interest expense | — | — |
TSEM leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
TSEM leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TSEM five years ago would be worth $78,039 today (with dividends reinvested), compared to $15,582 for GFS. Over the past 12 months, TSEM leads with a +504.8% total return vs GFS's +107.1%. The 3-year compound annual growth rate (CAGR) favors TSEM at 71.8% vs GFS's 6.5% — a key indicator of consistent wealth creation.
| Metric | TSEMTower Semiconduct… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| YTD ReturnYear-to-date | +78.1% | +96.1% |
| 1-Year ReturnPast 12 months | +504.8% | +107.1% |
| 3-Year ReturnCumulative with dividends | +406.8% | +20.9% |
| 5-Year ReturnCumulative with dividends | +680.4% | +55.8% |
| 10-Year ReturnCumulative with dividends | +1744.1% | +55.8% |
| CAGR (3Y)Annualised 3-year return | +71.8% | +6.5% |
TSEM leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
GFS leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
GFS is the less volatile stock with a 1.85 beta — it tends to amplify market swings less than TSEM's 2.41 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TSEMTower Semiconduct… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.41x | 1.85x |
| 52-Week HighHighest price in past year | $232.67 | $75.53 |
| 52-Week LowLowest price in past year | $35.42 | $31.51 |
| % of 52W HighCurrent price vs 52-week peak | +93.2% | +95.7% |
| RSI (14)Momentum oscillator 0–100 | 64.4 | 86.0 |
| Avg Volume (50D)Average daily shares traded | 2.9M | 4.0M |
GFS leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates TSEM as "Buy" and GFS as "Buy". Consensus price targets imply -29.0% upside for TSEM (target: $154) vs -29.3% for GFS (target: $51).
| Metric | TSEMTower Semiconduct… | GFSGLOBALFOUNDRIES I… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $154.00 | $51.14 |
| # AnalystsCovering analysts | 14 | 19 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | — |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
GFS leads in 2 of 6 categories (Valuation Metrics, Risk & Volatility). TSEM leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Best OverallTower Semiconductor Ltd. (TSEM)Leads 2 of 6 categories
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TSEM vs GFS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is TSEM or GFS a better buy right now?
For growth investors, Tower Semiconductor Ltd.
(TSEM) is the stronger pick with 9. 1% revenue growth year-over-year, versus 0. 6% for GLOBALFOUNDRIES Inc. (GFS). GLOBALFOUNDRIES Inc. (GFS) offers the better valuation at 45. 5x trailing P/E (39. 2x 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 GFS?
On trailing P/E, GLOBALFOUNDRIES Inc.
(GFS) is the cheapest at 45. 5x versus Tower Semiconductor Ltd. at 111. 8x. On forward P/E, GLOBALFOUNDRIES Inc. is actually cheaper at 39. 2x.
03Which is the better long-term investment — TSEM or GFS?
Over the past 5 years, Tower Semiconductor Ltd.
(TSEM) delivered a total return of +680. 4%, compared to +55. 8% for GLOBALFOUNDRIES Inc. (GFS). Over 10 years, the gap is even starker: TSEM returned +1744% versus GFS's +55. 8%. 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 GFS?
By beta (market sensitivity over 5 years), GLOBALFOUNDRIES Inc.
(GFS) is the lower-risk stock at 1. 85β versus Tower Semiconductor Ltd. 's 2. 41β — meaning TSEM is approximately 31% 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 is growing faster — TSEM or GFS?
By revenue growth (latest reported year), Tower Semiconductor Ltd.
(TSEM) is pulling ahead at 9. 1% versus 0. 6% for GLOBALFOUNDRIES Inc. (GFS). On earnings-per-share growth, the picture is similar: GLOBALFOUNDRIES Inc. grew EPS 431. 3% year-over-year, compared to 4. 9% for Tower Semiconductor Ltd.. Over a 3-year CAGR, TSEM leads at -2. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — TSEM or GFS?
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.
07Is TSEM or GFS more undervalued right now?
On forward earnings alone, GLOBALFOUNDRIES Inc.
(GFS) trades at 39. 2x forward P/E versus 72. 5x for Tower Semiconductor Ltd. — 33. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSEM: -29. 0% to $154. 00.
08Which pays a better dividend — TSEM or GFS?
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.
09Is TSEM or GFS 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 (+1744% 10Y return). GLOBALFOUNDRIES Inc. (GFS) carries a higher beta of 1. 85 — 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: +1744%, GFS: +55. 8%), 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.
10What are the main differences between TSEM and GFS?
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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Revenue Growth>
%
(TSEM: 13.7% · GFS: 0.0%)Net Margin>
%
(TSEM: 14.1% · GFS: 13.0%)P/E Ratio<
x
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