TOYO (NASDAQ:TOYO – Get Free Report) and Taiwan Semiconductor Manufacturing (NYSE:TSM – Get Free Report) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Analyst Ratings
This is a summary of recent ratings and recommmendations for TOYO and Taiwan Semiconductor Manufacturing, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TOYO | 1 | 1 | 2 | 0 | 2.25 |
| Taiwan Semiconductor Manufacturing | 0 | 2 | 11 | 3 | 3.06 |
TOYO currently has a consensus price target of $14.00, indicating a potential upside of 250.00%. Taiwan Semiconductor Manufacturing has a consensus price target of $528.78, indicating a potential upside of 27.99%. Given TOYO’s higher possible upside, equities analysts plainly believe TOYO is more favorable than Taiwan Semiconductor Manufacturing.
Earnings and Valuation
This table compares TOYO and Taiwan Semiconductor Manufacturing”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TOYO | $427.38 million | 0.35 | $39.66 million | $1.20 | 3.33 |
| Taiwan Semiconductor Manufacturing | $122.42 billion | 17.50 | $54.12 billion | $13.86 | 29.81 |
Taiwan Semiconductor Manufacturing has higher revenue and earnings than TOYO. TOYO 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 TOYO and Taiwan Semiconductor Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TOYO | N/A | N/A | N/A |
| Taiwan Semiconductor Manufacturing | 51.51% | 42.84% | 29.37% |
Volatility and Risk
TOYO has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Insider & Institutional Ownership
84.6% of TOYO shares are owned by institutional investors. Comparatively, 16.5% of Taiwan Semiconductor Manufacturing shares are owned by institutional investors. 0.3% of TOYO shares are owned by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Taiwan Semiconductor Manufacturing beats TOYO on 11 of the 14 factors compared between the two stocks.
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.
About Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.
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