Contrasting NVE (NASDAQ:NVEC) & TOYO (NASDAQ:TOYO)

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

Profitability

This table compares TOYO and NVE’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
NVE	57.64%	30.53%	29.54%

Analyst Ratings

This is a summary of recent ratings and recommmendations for TOYO and NVE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	1	1	2	0	2.25
NVE	0	0	1	0	3.00

TOYO currently has a consensus target price of $14.00, suggesting a potential upside of 217.46%. Given TOYO’s higher probable upside, equities research analysts clearly believe TOYO is more favorable than NVE.

Insider and Institutional Ownership

84.6% of TOYO shares are owned by institutional investors. Comparatively, 65.9% of NVE shares are owned by institutional investors. 0.3% of TOYO shares are owned by insiders. Comparatively, 2.1% of NVE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOYO	$427.38 million	0.39	$39.66 million	$1.20	3.68
NVE	$26.33 million	18.49	$15.20 million	$3.72	27.03

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

Volatility and Risk

TOYO has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, NVE has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Summary

NVE beats TOYO on 8 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 NVE

NVE Corporation develops and sells devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information in the United States and internationally. The company manufactures spintronic products, including sensors and couplers for use in acquiring and transmitting data. Its products comprise standard sensors to detect the presence of a magnetic or metallic material to determine position, rotation, or speed for the factory automation market; and custom and medical sensors for medical devices to replace electromechanical magnetic switches. The company also offers spintronic couplers for power conversion and industrial Internet of Things (IIoT) market; and DC-to-DC convertors for use in power conversion systems and industrial networks for the IIoT. In addition, it undertakes contracts for research and development, and licensing of spintronic magnetoresistive random access memory technology. NVE Corporation was founded in 1989 and is headquartered in Eden Prairie, Minnesota.