Analyzing Navitas Semiconductor (NASDAQ:NVTS) & TOYO (NASDAQ:TOYO)

Navitas Semiconductor (NASDAQ:NVTS) and TOYO (NASDAQ:TOYO) are both technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares Navitas Semiconductor and TOYO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$45.92 million	48.22	-$116.95 million	($1.33)	-6.38
TOYO	$427.38 million	0.40	$39.66 million	$1.20	3.78

TOYO has higher revenue and earnings than Navitas Semiconductor. Navitas Semiconductor is trading at a lower price-to-earnings ratio than TOYO, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for Navitas Semiconductor and TOYO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	2	1	2	0	2.00
TOYO	0	2	2	0	2.50

Navitas Semiconductor currently has a consensus target price of $15.92, indicating a potential upside of 87.74%. TOYO has a consensus target price of $14.00, indicating a potential upside of 209.05%. Given TOYO’s stronger consensus rating and higher possible upside, analysts clearly believe TOYO is more favorable than Navitas Semiconductor.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-856.85%	-13.13%	-11.91%
TOYO	N/A	N/A	N/A

Volatility and Risk

Navitas Semiconductor has a beta of 3.96, meaning that its stock price is 296% more volatile than the S&P 500. Comparatively, TOYO has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

46.1% of Navitas Semiconductor shares are held by institutional investors. Comparatively, 84.6% of TOYO shares are held by institutional investors. 12.4% of Navitas Semiconductor shares are held by insiders. Comparatively, 0.3% of TOYO shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

TOYO beats Navitas Semiconductor on 10 of the 13 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company’s products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.