Contrasting FTC Solar (NASDAQ:FTCI) & Tokyo Electron (OTC:TOELY)

FTC Solar (NASDAQ:FTCI) and Tokyo Electron (OTC:TOELY) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FTC Solar	-82.90%	-98.67%	-44.11%
Tokyo Electron	22.63%	28.75%	20.52%

Analyst Ratings

This is a breakdown of current ratings and price targets for FTC Solar and Tokyo Electron, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTC Solar	0	2	2	0	2.50
Tokyo Electron	0	0	0	1	4.00

FTC Solar presently has a consensus target price of $5.00, indicating a potential upside of 20.77%. Given FTC Solar’s higher possible upside, research analysts plainly believe FTC Solar is more favorable than Tokyo Electron.

Valuation & Earnings

This table compares FTC Solar 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
FTC Solar	$55.57 million	0.97	-$50.29 million	($3.74)	-1.11
Tokyo Electron	$12.33 billion	6.00	$2.51 billion	$3.87	20.74

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

Risk and Volatility

FTC Solar has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Institutional & Insider Ownership

45.4% of FTC Solar shares are held by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are held by institutional investors. 24.9% of FTC Solar shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Tokyo Electron beats FTC Solar on 11 of the 15 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 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.