TOYO (NASDAQ:TOYO) and Silicon Laboratories (NASDAQ:SLAB) Critical Comparison

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Silicon Laboratories and TOYO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Laboratories	2	5	0	0	1.71
TOYO	1	1	2	0	2.25

Silicon Laboratories presently has a consensus target price of $218.00, indicating a potential downside of 1.17%. TOYO has a consensus target price of $14.00, indicating a potential upside of 214.61%. Given TOYO’s stronger consensus rating and higher possible upside, analysts clearly believe TOYO is more favorable than Silicon Laboratories.

Profitability

This table compares Silicon Laboratories and TOYO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silicon Laboratories	-4.57%	-0.66%	-0.57%
TOYO	N/A	N/A	N/A

Institutional & Insider Ownership

84.6% of TOYO shares are owned by institutional investors. 1.6% of Silicon Laboratories shares are owned by insiders. Comparatively, 0.3% of TOYO shares are owned 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicon Laboratories	$784.76 million	9.38	-$64.91 million	($1.18)	-186.93
TOYO	$427.38 million	0.39	$39.66 million	$1.20	3.71

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

Risk & Volatility

Silicon Laboratories has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, TOYO has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Summary

TOYO beats Silicon Laboratories on 11 of the 14 factors compared between the two stocks.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

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.