NVE (NASDAQ:NVEC – Get Free Report) and TOYO (NASDAQ:TOYO – Get Free Report) are both small-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Profitability
This table compares NVE and TOYO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NVE | 57.64% | 30.53% | 29.54% |
| TOYO | N/A | N/A | N/A |
Valuation and Earnings
This table compares NVE and TOYO”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NVE | $31.26 million | 15.55 | $15.20 million | $3.72 | 27.02 |
| TOYO | $427.38 million | 0.39 | $39.66 million | $1.20 | 3.67 |
TOYO has higher revenue and earnings than NVE. TOYO is trading at a lower price-to-earnings ratio than NVE, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
65.9% of NVE shares are held by institutional investors. Comparatively, 84.6% of TOYO shares are held by institutional investors. 2.1% of NVE shares are held by insiders. Comparatively, 0.3% of TOYO shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for NVE and TOYO, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NVE | 0 | 0 | 1 | 0 | 3.00 |
| TOYO | 1 | 1 | 2 | 0 | 2.25 |
TOYO has a consensus price target of $14.00, indicating a potential upside of 218.18%. Given TOYO’s higher probable upside, analysts clearly believe TOYO is more favorable than NVE.
Volatility & Risk
NVE has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, TOYO has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Summary
NVE beats TOYO on 8 of the 14 factors compared between the two stocks.
About NVE
NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion and industrial Internet of Things (IIoT) market; and DC-to-DC convertors for use in power conversion systems and industrial networks for the IIoT. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.
About TOYO
TOYO Co. Ltd. engages in the design, manufacture, and sale of solar cells and modules. It is involved in integrating the upstream production of wafer and silicon, midstream production of solar cell, downstream production of photovoltaic (PV) modules, and potentially other stages of the solar power supply chain. The company was founded on November 8, 2022 and is headquartered in Tokyo, Japan.
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