Critical Survey: TOYO (NASDAQ:TOYO) versus indie Semiconductor (NASDAQ:INDI)

indie Semiconductor (NASDAQ:INDI) and TOYO (NASDAQ:TOYO) are both small-cap technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for indie Semiconductor and TOYO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
indie Semiconductor	1	2	1	0	2.00
TOYO	1	1	2	0	2.25

indie Semiconductor presently has a consensus price target of $4.75, indicating a potential upside of 31.94%. TOYO has a consensus price target of $14.00, indicating a potential upside of 214.61%. Given TOYO’s stronger consensus rating and higher probable upside, analysts plainly believe TOYO is more favorable than indie Semiconductor.

Institutional & Insider Ownership

67.7% of indie Semiconductor shares are held by institutional investors. Comparatively, 84.6% of TOYO shares are held by institutional investors. 2.6% of indie Semiconductor shares are held by company insiders. Comparatively, 0.3% of TOYO shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

indie Semiconductor has a beta of 2.78, meaning that its stock price is 178% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
indie Semiconductor	-65.18%	-32.02%	-13.61%
TOYO	N/A	N/A	N/A

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
indie Semiconductor	$217.39 million	3.84	-$143.07 million	($0.73)	-4.93
TOYO	$427.38 million	0.39	$39.66 million	$1.20	3.71

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

Summary

TOYO beats indie Semiconductor on 11 of the 14 factors compared between the two stocks.

About indie Semiconductor

indie Semiconductor, Inc. provides automotive semiconductors and software solutions for advanced driver assistance systems, autonomous vehicle, in-cabin, connected car, and electrification applications in the United States, South America, rest of North America, Greater China, South Korea, rest of the Asia Pacific, and Europe. It offers ultrasonic sensors for parking assist and systems; radar sensors for audio assistance and reverse information; front cameras for vehicle detection, collision avoidance, and sign reading; and side/inside cameras for blind spot and lane change assist, and driver behavior monitoring. The company also provides LiDAR for distance, speed, and obstacle detection, collision avoidance, and emergency brake system; and long range RADAR for audio assistance, obstacle detection, and ACC stop and go. In addition, it designs and manufactures photonic components on various technology platforms, including fiber Bragg gratings, low-noise lasers, athermal and tunable packaging, photonic integration, and low-noise and high-speed electronics. The company was founded in 2007 and is headquartered in Aliso Viejo, 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.