Critical Analysis: TOYO (TOYO) & Its Peers

TOYO (NASDAQ:TOYO) is one of 47 publicly-traded companies in the “Solar” industry, but how does it contrast to its competitors? We will compare TOYO to related businesses based on the strength of its risk, dividends, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Volatility & Risk

TOYO has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, TOYO’s competitors have a beta of 3.12, suggesting that their average share price is 212% more volatile than the S&P 500.

Profitability

This table compares TOYO and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOYO	N/A	N/A	N/A
TOYO Competitors	-490.51%	-31.27%	-5.01%

Earnings and Valuation

This table compares TOYO and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
TOYO	$427.38 million	$39.66 million	8.63
TOYO Competitors	$1.51 billion	$21.55 million	6.08

TOYO’s competitors have higher revenue, but lower earnings than TOYO. TOYO is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings for TOYO and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	1	1	2	0	2.25
TOYO Competitors	710	1629	2434	78	2.39

TOYO presently has a consensus target price of $16.50, suggesting a potential upside of 155.02%. As a group, “Solar” companies have a potential upside of 20.66%. Given TOYO’s higher possible upside, analysts clearly believe TOYO is more favorable than its competitors.

Insider & Institutional Ownership

84.6% of TOYO shares are held by institutional investors. Comparatively, 48.8% of shares of all “Solar” companies are held by institutional investors. 0.3% of TOYO shares are held by insiders. Comparatively, 17.8% of shares of all “Solar” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

TOYO beats its competitors on 7 of the 13 factors compared.

TOYO Company Profile

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.