ESS Tech (NYSE:GWH) vs. Tokyo Electron (OTCMKTS:TOELY) Head-To-Head Analysis

ESS Tech (NYSE:GWH) and Tokyo Electron (OTCMKTS:TOELY) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares ESS Tech and Tokyo Electron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-1,045.28%	-592.34%	-125.15%
Tokyo Electron	21.74%	28.36%	20.73%

Valuation & Earnings

This table compares ESS Tech and Tokyo Electron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$6.30 million	6.31	-$86.22 million	($5.10)	-0.40
Tokyo Electron	$15.97 billion	6.59	$3.59 billion	$3.94	29.00

Tokyo Electron has higher revenue and earnings than ESS Tech. ESS Tech is trading at a lower price-to-earnings ratio than Tokyo Electron, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ESS Tech has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for ESS Tech and Tokyo Electron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	1	5	1	0	2.00
Tokyo Electron	0	0	0	1	4.00

ESS Tech presently has a consensus price target of $2.88, indicating a potential upside of 41.98%. Given ESS Tech’s higher probable upside, equities analysts plainly believe ESS Tech is more favorable than Tokyo Electron.

Insider and Institutional Ownership

46.8% of ESS Tech shares are held by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are held by institutional investors. 1.7% of ESS Tech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Tokyo Electron beats ESS Tech on 11 of the 15 factors compared between the two stocks.

About ESS Tech

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

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.