First Solar (NASDAQ:FSLR) versus United Microelectronics (NYSE:UMC) Critical Comparison

United Microelectronics (NYSE:UMC) and First Solar (NASDAQ:FSLR) are both large-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Insider & Institutional Ownership

5.1% of United Microelectronics shares are owned by institutional investors. Comparatively, 92.1% of First Solar shares are owned by institutional investors. 8.0% of United Microelectronics shares are owned by insiders. Comparatively, 0.6% of First Solar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for United Microelectronics and First Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Microelectronics	0	2	1	0	2.33
First Solar	0	4	21	0	2.84

United Microelectronics currently has a consensus price target of $8.90, suggesting a potential upside of 7.16%. First Solar has a consensus price target of $266.04, suggesting a potential upside of 22.75%. Given First Solar’s stronger consensus rating and higher possible upside, analysts plainly believe First Solar is more favorable than United Microelectronics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Microelectronics	24.79%	15.60%	9.85%
First Solar	28.75%	16.24%	10.61%

Risk and Volatility

United Microelectronics has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Earnings and Valuation

This table compares United Microelectronics and First Solar’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Microelectronics	$7.25 billion	2.87	$1.95 billion	$0.70	11.86
First Solar	$3.32 billion	6.99	$830.78 million	$9.54	22.72

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

Summary

First Solar beats United Microelectronics on 11 of the 14 factors compared between the two stocks.

About United Microelectronics

United Microelectronics Corporation operates as a semiconductor wafer foundry in Taiwan, Singapore, China, Hong Kong, Japan, the United States, Europe, and internationally. The company provides circuit design, mask tooling, wafer fabrication, and assembly and testing services. It serves fabless design companies and integrated device manufacturers. The company was incorporated in 1980 and is headquartered in Hsinchu City, Taiwan.

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.