TOYO (NASDAQ:TOYO) versus Semtech (NASDAQ:SMTC) Head-To-Head Analysis

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

Risk and Volatility

TOYO has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Semtech has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500.

Profitability

This table compares TOYO and Semtech’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
Semtech	13.11%	21.74%	8.98%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOYO	$427.38 million	0.35	$39.66 million	$1.20	3.30
Semtech	$1.05 billion	12.64	-$40.38 million	$1.51	94.19

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for TOYO and Semtech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	1	1	2	0	2.25
Semtech	0	3	15	1	2.89

TOYO currently has a consensus target price of $14.00, indicating a potential upside of 253.54%. Semtech has a consensus target price of $213.11, indicating a potential upside of 49.85%. Given TOYO’s higher probable upside, analysts clearly believe TOYO is more favorable than Semtech.

Insider & Institutional Ownership

84.6% of TOYO shares are held by institutional investors. 0.3% of TOYO shares are held by company insiders. Comparatively, 0.4% of Semtech shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Semtech beats TOYO on 11 of the 14 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 Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.