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TSEM vs ZM

TSEM
Tower Semiconductor Ltd.
BEARISH
Price
$224.49
Market Cap
$26.71B
Sector
Technology
AI Confidence
85%
ZM
Zoom Communications, Inc.
BULLISH
Price
$80.39
Market Cap
$23.8B
Sector
Technology
AI Confidence
40%

Valuation

P/E Ratio
TSEM
116.32
ZM
13.01
Forward P/E
TSEM
46.83
ZM
13.1
P/B Ratio
TSEM
8.65
ZM
2.42
P/S Ratio
TSEM
17.06
ZM
4.89
EV/EBITDA
TSEM
48.78
ZM
12.5

Profitability

Gross Margin
TSEM
23.23%
ZM
77.39%
Operating Margin
TSEM
16.09%
ZM
21.5%
Profit Margin
TSEM
14.08%
ZM
39.03%
ROE
TSEM
7.89%
ZM
20.28%
ROA
TSEM
3.79%
ZM
6.22%

Growth

Revenue Growth
TSEM
13.7%
ZM
5.3%
Earnings Growth
TSEM
42.6%
ZM
91.5%

Financial Health

Debt/Equity
TSEM
0.06
ZM
0.01
Current Ratio
TSEM
6.48
ZM
4.33
Quick Ratio
TSEM
5.42
ZM
4.16

Dividends

Dividend Yield
TSEM
--
ZM
--
Payout Ratio
TSEM
0.0%
ZM
0.0%

AI Verdict

TSEM BEARISH

TSEM exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally strong balance sheet characterized by negligible debt. However, the stock is severely overvalued, trading at $224.49—nearly four times its growth-based intrinsic value of $56.93 and nearly seven times its Graham Number of $33.56. While earnings growth is robust, the P/E of 116.32 and PEG of 5.44 indicate that the current price has far outpaced fundamental growth. The combination of a bearish technical trend (10/100) and a current price significantly above the analyst target of $168.57 suggests a high risk of a correction.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.06
Superior liquidity evidenced by a Current Ratio of 6.48
Strong earnings growth trajectory (42.60% YoY)
Risks
Extreme valuation disconnect (P/E 116.32, P/S 17.06)
Price is significantly higher than both Graham Number and Intrinsic Value
Bearish technical trend score (10/100) suggesting a potential peak
ZM BULLISH

ZM shows bullish fundamentals based on deterministic rules. Financial strength is strong (F-Score 8/9). Key strengths include strong valuation and growth metrics.

Strengths
Attractive valuation with P/E of 13.0
Strong profitability (39.0% margin)
Strong financial trend (Piotroski F-Score: 8/9)
Risks
Limited historical data available for full assessment

Compare Another Pair

TSEM vs ZM: Head-to-Head Comparison

This page compares Tower Semiconductor Ltd. (TSEM) and Zoom Communications, Inc. (ZM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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