Tokyo Electron (OTCMKTS:TOELY – Get Free Report) and Electrovaya (NASDAQ:ELVA – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 22.5% of Electrovaya shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Tokyo Electron has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500. Comparatively, Electrovaya has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Tokyo Electron | 23.40% | 22.98% | 17.30% |
| Electrovaya | 7.03% | 11.35% | 6.19% |
Valuation & Earnings
This table compares Tokyo Electron and Electrovaya”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tokyo Electron | $16.23 billion | 8.98 | $3.82 billion | $4.13 | 37.69 |
| Electrovaya | $63.83 million | 8.00 | $3.36 million | $0.12 | 85.92 |
Tokyo Electron has higher revenue and earnings than Electrovaya. Tokyo Electron is trading at a lower price-to-earnings ratio than Electrovaya, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for Tokyo Electron and Electrovaya, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tokyo Electron | 0 | 1 | 0 | 0 | 2.00 |
| Electrovaya | 0 | 2 | 3 | 1 | 2.83 |
Electrovaya has a consensus price target of $12.63, indicating a potential upside of 22.45%. Given Electrovaya’s stronger consensus rating and higher possible upside, analysts plainly believe Electrovaya is more favorable than Tokyo Electron.
Summary
Tokyo Electron beats Electrovaya on 8 of the 14 factors compared between the two stocks.
About Tokyo Electron
Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.
About Electrovaya
Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as competencies in building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.
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