Photronics (NASDAQ:PLAB – Get Free Report) and Tokyo Electron (OTC:TOELY – Get Free Report) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.
Risk & Volatility
Photronics has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Photronics and Tokyo Electron, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Photronics | 0 | 0 | 1 | 0 | 3.00 |
| Tokyo Electron | 0 | 0 | 0 | 1 | 4.00 |
Valuation and Earnings
This table compares Photronics and Tokyo Electron”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Photronics | $862.75 million | 1.36 | $130.69 million | $2.35 | 7.84 |
| Tokyo Electron | $12.33 billion | 5.49 | $2.51 billion | $3.75 | 19.59 |
Tokyo Electron has higher revenue and earnings than Photronics. Photronics is trading at a lower price-to-earnings ratio than Tokyo Electron, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Photronics and Tokyo Electron’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Photronics | 15.07% | 9.10% | 7.80% |
| Tokyo Electron | 22.63% | 28.75% | 20.52% |
Institutional & Insider Ownership
88.4% of Photronics shares are held by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are held by institutional investors. 3.2% of Photronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Tokyo Electron beats Photronics on 11 of the 15 factors compared between the two stocks.
About Photronics
Photronics, Inc., together with its subsidiaries, engages in the manufacture and sale of photomask products and services in the United States, Taiwan, China, Korea, Europe, and internationally. It offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs); and to transfer circuit patterns onto semiconductor wafers, and FDP substrates. The company offers electrical and optical components. It sells its products to semiconductor and FPD manufacturers, designers, and foundries, as well as to other high-performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was incorporated in 1969 and is based in Brookfield, Connecticut.
About Tokyo Electron
Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.
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