FTC Solar (NASDAQ:FTCI) & TOYO (NASDAQ:TOYO) Critical Review

FTC Solar (NASDAQ:FTCI) and TOYO (NASDAQ:TOYO) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, risk, earnings, profitability, valuation, dividends and institutional ownership.

Profitability

This table compares FTC Solar and TOYO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTC Solar	-73.04%	-262.78%	-55.79%
TOYO	N/A	N/A	N/A

Earnings and Valuation

This table compares FTC Solar and TOYO”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTC Solar	$47.35 million	2.75	-$48.61 million	($3.92)	-2.23
TOYO	$176.96 million	1.99	$40.61 million	N/A	N/A

TOYO has higher revenue and earnings than FTC Solar.

Risk & Volatility

FTC Solar has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, TOYO has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for FTC Solar and TOYO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTC Solar	1	2	1	0	2.00
TOYO	0	1	0	0	2.00

FTC Solar presently has a consensus price target of $4.25, indicating a potential downside of 51.37%. Given FTC Solar’s higher probable upside, equities analysts plainly believe FTC Solar is more favorable than TOYO.

Institutional and Insider Ownership

45.4% of FTC Solar shares are held by institutional investors. Comparatively, 84.6% of TOYO shares are held by institutional investors. 21.0% of FTC Solar shares are held by company insiders. Comparatively, 0.3% of TOYO shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

TOYO beats FTC Solar on 6 of the 11 factors compared between the two stocks.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 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.