Critical Comparison: TOYO (NASDAQ:TOYO) & FTC Solar (NASDAQ:FTCI)

TOYO (NASDAQ:TOYO) and FTC Solar (NASDAQ:FTCI) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

84.6% of TOYO shares are held by institutional investors. Comparatively, 45.4% of FTC Solar shares are held by institutional investors. 0.3% of TOYO shares are held by insiders. Comparatively, 21.0% of FTC Solar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for TOYO and FTC Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	0	1	0	0	2.00
FTC Solar	1	2	1	0	2.00

FTC Solar has a consensus price target of $4.25, suggesting a potential downside of 51.81%. Given FTC Solar’s higher possible upside, analysts plainly believe FTC Solar is more favorable than TOYO.

Volatility and Risk

TOYO has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares TOYO and FTC Solar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOYO	$176.96 million	2.08	$40.61 million	N/A	N/A
FTC Solar	$47.35 million	2.77	-$48.61 million	($3.92)	-2.25

TOYO has higher revenue and earnings than FTC Solar.

Profitability

This table compares TOYO and FTC Solar’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
FTC Solar	-73.04%	-262.78%	-55.79%

Summary

TOYO beats FTC Solar on 6 of the 11 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 FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.