Comprehensive Stock Comparison
Compare Tower Semiconductor Ltd. (TSEM) vs SkyWater Technology, Inc. (SKYT) 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 | SKYT | 29.2% revenue growth vs TSEM's 9.1% |
| Value | SKYT | Lower P/E (12.1x vs 41.9x) |
| Quality / Margins | SKYT | 26.9% net margin vs TSEM's 14.1% |
| Stability / Safety | TSEM | Beta 1.73 vs SKYT's 2.28 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | SKYT | +215.8% vs TSEM's +193.8% |
| Efficiency (ROA) | SKYT | 16.2% ROA vs TSEM's 6.6%, ROIC -1.3% vs 5.4% |
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
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.
SkyWater Technology is a specialized semiconductor foundry that provides custom development and manufacturing services for analog, mixed-signal, and specialty chips. It generates revenue primarily from engineering services and wafer manufacturing—roughly 60% from manufacturing and 40% from development services—serving aerospace, defense, automotive, and IoT markets. Its key advantage is being the only U.S.-owned and Department of Defense-accredited pure-play semiconductor foundry, offering trusted domestic manufacturing for sensitive applications.
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
TSEM leads in 3 of 6 categories (Financial Metrics, Total Returns). SKYT leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
TSEM is the larger business by revenue, generating $1.6B annually — 3.5x SKYT's $442M. SKYT is the more profitable business, keeping 26.9% of every revenue dollar as net income compared to TSEM's 14.1%. On growth, SKYT holds the edge at +126.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | TSEMTower Semiconduct… | SKYTSkyWater Technolo… |
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $442M |
| EBITDAEarnings before interest/tax | $496M | $21M |
| Net IncomeAfter-tax profit | $220M | $119M |
| Free Cash FlowCash after capex | -$41M | -$53M |
| Gross MarginGross profit ÷ Revenue | +23.2% | +19.7% |
| Operating MarginEBIT ÷ Revenue | +12.4% | -0.6% |
| Net MarginNet income ÷ Revenue | +14.1% | +26.9% |
| FCF MarginFCF ÷ Revenue | -2.6% | -12.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | +13.7% | +126.6% |
| EPS Growth (YoY)Latest quarter vs prior year | +42.9% | -10.3% |
Valuation Metrics
At 12.1x trailing earnings, SKYT trades at a 81% valuation discount to TSEM's 64.4x P/E.
| Metric | TSEMTower Semiconduct… | SKYTSkyWater Technolo… |
|---|---|---|
| Market CapShares × price | $14.0B | $1.4B |
| Enterprise ValueMkt cap + debt − cash | $14.0B | $1.4B |
| Trailing P/EPrice ÷ TTM EPS | 64.37x | 12.07x |
| Forward P/EPrice ÷ next-FY EPS est. | 41.89x | — |
| PEG RatioP/E ÷ EPS growth rate | 3.12x | — |
| EV / EBITDAEnterprise value multiple | 28.09x | — |
| Price / SalesMarket cap ÷ Revenue | 8.97x | 3.23x |
| Price / BookPrice ÷ Book value/share | 4.88x | 7.33x |
| Price / FCFMarket cap ÷ FCF | — | — |
Profitability & Efficiency
SKYT delivers a 60.7% return on equity — every $100 of shareholder capital generates $61 in annual profit, vs $8 for TSEM. SKYT carries lower financial leverage with a 0.03x debt-to-equity ratio, signaling a more conservative balance sheet compared to TSEM's 0.06x. On the Piotroski fundamental quality scale (0–9), TSEM scores 6/9 vs SKYT's 3/9, reflecting solid financial health.
| Metric | TSEMTower Semiconduct… | SKYTSkyWater Technolo… |
|---|---|---|
| ROE (TTM)Return on equity | +7.6% | +60.7% |
| ROA (TTM)Return on assets | +6.6% | +16.2% |
| ROICReturn on invested capital | +5.4% | -1.3% |
| ROCEReturn on capital employed | +6.6% | -0.9% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 3 |
| Debt / EquityFinancial leverage | 0.06x | 0.03x |
| Net DebtTotal debt minus cash | -$74M | -$17M |
| Cash & Equiv.Liquid assets | $235M | $23M |
| Total DebtShort + long-term debt | $162M | $6M |
| Interest CoverageEBIT ÷ Interest expense | — | 28.24x |
Total Returns (with DRIP)
A $10,000 investment in TSEM five years ago would be worth $40,754 today (with dividends reinvested), compared to $16,607 for SKYT. Over the past 12 months, SKYT leads with a +215.8% total return vs TSEM's +193.8%. The 3-year compound annual growth rate (CAGR) favors TSEM at 45.5% vs SKYT's 30.9% — a key indicator of consistent wealth creation.
| Metric | TSEMTower Semiconduct… | SKYTSkyWater Technolo… |
|---|---|---|
| YTD ReturnYear-to-date | +2.6% | +31.3% |
| 1-Year ReturnPast 12 months | +193.8% | +215.8% |
| 3-Year ReturnCumulative with dividends | +207.9% | +124.4% |
| 5-Year ReturnCumulative with dividends | +307.5% | +66.1% |
| 10-Year ReturnCumulative with dividends | +817.5% | +66.1% |
| CAGR (3Y)Annualised 3-year return | +45.5% | +30.9% |
Risk & Volatility
TSEM is the less volatile stock with a 1.73 beta — it tends to amplify market swings less than SKYT's 2.28 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | TSEMTower Semiconduct… | SKYTSkyWater Technolo… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.73x | 2.28x |
| 52-Week HighHighest price in past year | $149.57 | $36.27 |
| 52-Week LowLowest price in past year | $28.64 | $5.67 |
| % of 52W HighCurrent price vs 52-week peak | +83.5% | +81.2% |
| RSI (14)Momentum oscillator 0–100 | 44.6 | 58.3 |
| Avg Volume (50D)Average daily shares traded | 1.6M | 2.3M |
Analyst Outlook
Wall Street rates TSEM as "Buy" and SKYT as "Hold". Consensus price targets imply 23.3% upside for TSEM (target: $154) vs 18.8% for SKYT (target: $35).
| Metric | TSEMTower Semiconduct… | SKYTSkyWater Technolo… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $154.00 | $35.00 |
| # AnalystsCovering analysts | 14 | 6 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | 2 | 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 | May 21 | Feb 26 | Change |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 100 | 480.82 | +380.8% |
| SkyWater Technology… (SKYT) | 119.39 | 176.55 | +47.9% |
Tower Semiconductor… (TSEM) returned +308% over 5 years vs SkyWater Technology… (SKYT)'s +66%. 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% |
| SkyWater Technology… (SKYT) | $132M | $442M | +234.5% |
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 |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 16.3% | 14.1% | -13.7% |
| SkyWater Technology… (SKYT) | -0.0% | 26.9% | +54765.4% |
Tower Semiconductor Ltd.'s net margin went from 16% (2016) to 14% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 11.8 | 60.5 | +412.7% |
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 |
|---|---|---|---|
| Tower Semiconductor… (TSEM) | 2.09 | 1.94 | -7.2% |
| SkyWater Technology… (SKYT) | -0 | 2.44 | +143629.4% |
Tower Semiconductor Ltd.'s EPS grew from $2.09 (2016) to $1.94 (2025) — a -1% CAGR.
Chart 6Free Cash Flow — 5 Years
Tower Semiconductor Ltd. generated $-41M FCF in 2025 (-138% vs 2021). SkyWater Technology, Inc. generated $-53M FCF in 2025 (+39% vs 2021).
TSEM vs SKYT: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is TSEM or SKYT a better buy right now?
SkyWater Technology, Inc. (SKYT) offers the better valuation at 12.1x trailing P/E, 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 SKYT?
On trailing P/E, SkyWater Technology, Inc. (SKYT) is the cheapest at 12.1x versus Tower Semiconductor Ltd. at 64.4x.
03Which is the better long-term investment — TSEM or SKYT?
Over the past 5 years, Tower Semiconductor Ltd. (TSEM) delivered a total return of +307.5%, compared to +66.1% for SkyWater Technology, Inc. (SKYT). 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 SKYT's +66.1%. 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 SKYT?
By beta (market sensitivity over 5 years), Tower Semiconductor Ltd. (TSEM) is the lower-risk stock at 1.73β versus SkyWater Technology, Inc.'s 2.28β — meaning SKYT is approximately 32% more volatile than TSEM relative to the S&P 500. On balance sheet safety, SkyWater Technology, Inc. (SKYT) carries a lower debt/equity ratio of 3% versus 6% for Tower Semiconductor Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — TSEM or SKYT?
SkyWater Technology, Inc. (SKYT) 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: TSEM leads at 12.4% versus -0.6% for SKYT. At the gross margin level — before operating expenses — TSEM leads at 23.2%, 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 TSEM or SKYT more undervalued right now?
Analyst consensus price targets imply the most upside for TSEM: 23.3% to $154.00.
07Which pays a better dividend — TSEM or SKYT?
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 TSEM or SKYT 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). SkyWater Technology, Inc. (SKYT) carries a higher beta of 2.28 — 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%, SKYT: +66.1%), 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 SKYT?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: TSEM is a mid-cap quality compounder stock; SKYT is a small-cap deep-value stock. 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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