TOYO (NASDAQ:TOYO) and Nextracker (NASDAQ:NXT) Critical Review

Nextracker (NASDAQ:NXT) and TOYO (NASDAQ:TOYO) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Nextracker and TOYO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextracker	0	10	16	1	2.67
TOYO	0	1	0	0	2.00

Nextracker currently has a consensus price target of $94.05, indicating a potential downside of 6.70%. Given Nextracker’s stronger consensus rating and higher possible upside, research analysts clearly believe Nextracker is more favorable than TOYO.

Profitability

This table compares Nextracker and TOYO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextracker	17.08%	35.05%	18.13%
TOYO	N/A	N/A	N/A

Institutional & Insider Ownership

67.4% of Nextracker shares are held by institutional investors. Comparatively, 84.6% of TOYO shares are held by institutional investors. 0.6% of Nextracker shares are held by company insiders. Comparatively, 0.3% of TOYO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Nextracker and TOYO”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextracker	$2.96 billion	5.04	$509.17 million	$3.85	26.18
TOYO	$176.96 million	1.44	$40.61 million	N/A	N/A

Nextracker has higher revenue and earnings than TOYO.

Risk and Volatility

Nextracker has a beta of 2.31, indicating that its share price is 131% more volatile than the S&P 500. Comparatively, TOYO has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.

Summary

Nextracker beats TOYO on 12 of the 13 factors compared between the two stocks.

About Nextracker

Nextracker Inc., an energy solutions company, provides solar tracker and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. was formerly a subsidiary of Flex Ltd.

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.