Reviewing Tokyo Electron (OTCMKTS:TOELY) and Emeren Group (NYSE:SOL)

Tokyo Electron (OTCMKTS:TOELY) and Emeren Group (NYSE:SOL) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Risk and Volatility

Tokyo Electron has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500. Comparatively, Emeren Group has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Institutional & Insider Ownership

1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 44.1% of Emeren Group shares are held by institutional investors. 18.0% of Emeren Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Tokyo Electron and Emeren Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	11.06	$2.51 billion	$2.68	27.48
Emeren Group	$104.67 million	0.93	-$3.19 million	($0.26)	-7.31

Tokyo Electron has higher revenue and earnings than Emeren Group. Emeren Group 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 Tokyo Electron and Emeren Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	21.32%	24.79%	17.58%
Emeren Group	-20.91%	-3.15%	-2.41%

Analyst Recommendations

This is a summary of current recommendations and price targets for Tokyo Electron and Emeren Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	0	N/A
Emeren Group	2	0	2	1	2.40

Emeren Group has a consensus price target of $4.88, indicating a potential upside of 156.58%. Given Emeren Group’s higher probable upside, analysts plainly believe Emeren Group is more favorable than Tokyo Electron.

Summary

Tokyo Electron beats Emeren Group on 8 of the 14 factors compared between the two stocks.

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.

About Emeren Group

Emeren Group Ltd, through its subsidiaries, develops, builds, operates, and sells solar power projects. It owns and operates 3 gigawatt pipeline of projects and independent power producer assets. The company also develops community solar gardens; and sells project rights. In addition, it engages in engineering design; procurement of solar modules; balance-of-system components and other components; and construction contracting and management services. Further, the company generates and sells electricity. It operates in China, United States, UK, Spain, France, Poland, Italy, Hungary, and Internationally. The company was formerly known as ReneSola Ltd and changed its name to Emeren Group Ltd in January 2023. Emeren Group Ltd was founded in 2005 and is headquartered in Stamford, Connecticut.