First Solar (NASDAQ:FSLR) vs. Sumco (OTCMKTS:SUMCF) Critical Comparison

First Solar (NASDAQ:FSLR) and Sumco (OTCMKTS:SUMCF) are both technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Profitability

This table compares First Solar and Sumco’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Solar	32.47%	18.02%	13.05%
Sumco	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for First Solar and Sumco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	2	12	21	1	2.58
Sumco	0	0	0	0	0.00

First Solar currently has a consensus price target of $266.27, suggesting a potential upside of 30.23%. Given First Solar’s stronger consensus rating and higher possible upside, research analysts plainly believe First Solar is more favorable than Sumco.

Earnings & Valuation

This table compares First Solar and Sumco”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$5.22 billion	4.21	$1.53 billion	$16.22	12.61
Sumco	N/A	N/A	N/A	$14.15	1.50

First Solar has higher revenue and earnings than Sumco. Sumco is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 17.5% of Sumco shares are held by institutional investors. 0.4% of First Solar shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

First Solar beats Sumco on 12 of the 12 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

About Sumco

Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.