Critical Survey: First Solar (NASDAQ:FSLR) & EMCORE (NASDAQ:EMKR)

First Solar (NASDAQ:FSLR) and EMCORE (NASDAQ:EMKR) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Insider & Institutional Ownership

92.1% of First Solar shares are owned by institutional investors. Comparatively, 65.7% of EMCORE shares are owned by institutional investors. 0.6% of First Solar shares are owned by insiders. Comparatively, 0.9% of EMCORE shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares First Solar and EMCORE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$3.85 billion	5.18	$830.78 million	$11.61	16.04
EMCORE	$90.96 million	0.30	-$75.36 million	($8.77)	-0.35

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Solar	32.41%	17.56%	11.46%
EMCORE	-81.08%	-25.05%	-13.56%

Volatility & Risk

First Solar has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, EMCORE has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for First Solar and EMCORE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	0	3	23	1	2.93
EMCORE	0	3	0	0	2.00

First Solar presently has a consensus price target of $279.04, indicating a potential upside of 49.85%. EMCORE has a consensus price target of $3.00, indicating a potential downside of 1.64%. Given First Solar’s stronger consensus rating and higher possible upside, equities research analysts plainly believe First Solar is more favorable than EMCORE.

Summary

First Solar beats EMCORE on 13 of the 15 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 EMCORE

EMCORE Corporation, together with its subsidiaries, designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems in the United States and internationally. It offers navigation system and inertial sensing products, such as gyroscopes and multi-axis sensors, inertial measurement units, fiber optic gyroscopes, quartz micro electromechanical systems, inertial navigation systems, tactical navigation, and naval and amphibious navigation, as well as radar positioning and pointing systems, and battlefield/artillery survey systems. The company sells its products through direct sales force, application engineers, third-party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California.