FTC Solar (NASDAQ:FTCI) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for FTC Solar and Taiwan Semiconductor Manufacturing, as provided by MarketBeat.com.

FTC Solar currently has a consensus target price of $5.13, indicating a potential upside of 140.61%. Taiwan Semiconductor Manufacturing has a consensus target price of $90.25, indicating a potential upside of 0.87%. Given FTC Solar's stronger consensus rating and  higher possible upside, analysts clearly believe FTC Solar is more favorable than Taiwan Semiconductor Manufacturing.

Earnings & Valuation

This table compares FTC Solar and Taiwan Semiconductor Manufacturing's revenue, earnings per share and valuation.

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

Profitability

This table compares FTC Solar and Taiwan Semiconductor Manufacturing's net margins, return on equity and return on assets.

Institutional & Insider Ownership

28.6% of FTC Solar shares are owned by institutional investors. Comparatively, 16.8% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 44.1% of FTC Solar shares are owned by insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

FTC Solar has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Summary

Taiwan Semiconductor Manufacturing beats FTC Solar on 9 of the 15 factors compared between the two stocks.

About FTC Solar

FTC Solar, Inc. provides solar tracker systems, technology, software, and engineering services in the United States, Vietnam, and internationally. It offers two-panel in-portrait single-axis tracker solutions under the Voyager brand name. The company also provides SunPath, a software solution to enhance energy production; Atlas, a web-based enterprise-level database that allows users to manage their project portfolio; and SunDAT, a software solution enables automated design and optimization of solar panel systems across residential, commercial, and utility-scale sites. Its customers include project developers; solar asset owners; and engineering, procurement, and construction contractors that design and build solar energy projects. FTC Solar, Inc. was incorporated in 2017 and is headquartered in Austin, Texas.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Co., Ltd. engages in the manufacture and sale of integrated circuits and wafer semiconductor devices. Its chips are used in personal computers and peripheral products, information applications, wired and wireless communications systems products, and automotive and industrial equipment including consumer electronics such as digital video compact disc player, digital television, game consoles, and digital cameras. The company was founded by Chung Mou Chang on February 21, 1987 and is headquartered in Hsinchu, Taiwan.