Analyzing Taiwan Semiconductor Manufacturing (NYSE:TSM) & TOYO (NASDAQ:TOYO)

TOYO (NASDAQ:TOYO) and Taiwan Semiconductor Manufacturing (NYSE:TSM) are both technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Institutional and Insider Ownership

84.6% of TOYO shares are held by institutional investors. Comparatively, 16.5% of Taiwan Semiconductor Manufacturing shares are held by institutional investors. 0.3% of TOYO shares are held by company insiders. Comparatively, 1.1% of Taiwan Semiconductor Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

TOYO has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Taiwan Semiconductor Manufacturing has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	1	1	2	0	2.25
Taiwan Semiconductor Manufacturing	0	2	11	3	3.06

TOYO currently has a consensus price target of $14.00, indicating a potential upside of 250.00%. Taiwan Semiconductor Manufacturing has a consensus price target of $528.78, indicating a potential upside of 27.99%. Given TOYO’s higher probable upside, research analysts clearly believe TOYO is more favorable than Taiwan Semiconductor Manufacturing.

Valuation & Earnings

This table compares TOYO and Taiwan Semiconductor Manufacturing”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	0.35	$39.66 million	$1.20	3.33
Taiwan Semiconductor Manufacturing	$122.42 billion	17.50	$54.12 billion	$13.86	29.81

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

Profitability

This table compares TOYO and Taiwan Semiconductor Manufacturing’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
Taiwan Semiconductor Manufacturing	51.51%	42.84%	29.37%

Summary

Taiwan Semiconductor Manufacturing beats TOYO on 11 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 Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally. It provides a range of wafer fabrication processes, including processes to manufacture complementary metal- oxide-semiconductor (CMOS) logic, mixed-signal, radio frequency, embedded memory, bipolar CMOS mixed-signal, and others. The company also offers customer and engineering support services; manufactures masks; and invests in technology start-up companies; researches, designs, develops, manufactures, packages, tests, and sells color filters; and provides investment services. Its products are used in high performance computing, smartphones, Internet of things, automotive, and digital consumer electronics. The company was incorporated in 1987 and is headquartered in Hsinchu City, Taiwan.