Tigo Energy (NASDAQ:TYGO) vs. Onsemi (NASDAQ:ON) Critical Analysis

Onsemi (NASDAQ:ON) and Tigo Energy (NASDAQ:TYGO) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Onsemi and Tigo Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onsemi	2	5	16	0	2.61
Tigo Energy	0	1	2	0	2.67

Onsemi presently has a consensus target price of $86.30, indicating a potential upside of 29.49%. Tigo Energy has a consensus target price of $3.00, indicating a potential upside of 200.00%. Given Tigo Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Tigo Energy is more favorable than Onsemi.

Profitability

This table compares Onsemi and Tigo Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onsemi	23.80%	22.38%	13.57%
Tigo Energy	-110.29%	-103.85%	-46.23%

Institutional and Insider Ownership

97.7% of Onsemi shares are held by institutional investors. Comparatively, 15.7% of Tigo Energy shares are held by institutional investors. 0.3% of Onsemi shares are held by insiders. Comparatively, 26.3% of Tigo Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Onsemi and Tigo Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onsemi	$8.25 billion	3.44	$2.18 billion	$4.03	16.54
Tigo Energy	$45.99 million	1.32	-$980,000.00	($0.85)	-1.18

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

Volatility & Risk

Onsemi has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Tigo Energy has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Summary

Onsemi beats Tigo Energy on 11 of the 14 factors compared between the two stocks.

About Onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu

About Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.