Financial Review: TOYO (NASDAQ:TOYO) & First Solar (NASDAQ:FSLR)

TOYO (NASDAQ:TOYO) and First Solar (NASDAQ:FSLR) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Institutional and Insider Ownership

84.6% of TOYO shares are held by institutional investors. Comparatively, 92.1% of First Solar shares are held by institutional investors. 0.3% of TOYO shares are held by company insiders. Comparatively, 0.5% of First Solar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for TOYO and First Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	0	1	0	0	2.00
First Solar	0	6	27	2	2.89

First Solar has a consensus target price of $270.73, suggesting a potential upside of 4.73%. Given First Solar’s stronger consensus rating and higher probable upside, analysts clearly believe First Solar is more favorable than TOYO.

Profitability

This table compares TOYO and First 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
First Solar	27.73%	16.61%	11.08%

Earnings & Valuation

This table compares TOYO and First Solar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOYO	$176.96 million	1.29	$40.61 million	N/A	N/A
First Solar	$4.21 billion	6.60	$1.29 billion	$13.02	19.85

First Solar has higher revenue and earnings than TOYO.

Volatility & Risk

TOYO has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, First Solar has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500.

Summary

First Solar beats TOYO on 13 of the 13 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 First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.