Contrasting Tokyo Electron (OTCMKTS:TOELY) and NOVONIX (NASDAQ:NVX)

Tokyo Electron (OTCMKTS:TOELY) and NOVONIX (NASDAQ:NVX) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Insider & Institutional Ownership

1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 0.1% of NOVONIX shares are held by institutional investors. 23.7% of NOVONIX shares are held 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.

Valuation and Earnings

This table compares Tokyo Electron and NOVONIX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$15.97 billion	7.78	$3.59 billion	$3.66	35.99
NOVONIX	$5.85 million	32.23	-$74.82 million	N/A	N/A

Tokyo Electron has higher revenue and earnings than NOVONIX.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tokyo Electron and NOVONIX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	1	0	0	2.00
NOVONIX	1	0	0	0	1.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	21.07%	23.91%	17.57%
NOVONIX	N/A	N/A	N/A

Volatility and Risk

Tokyo Electron has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, NOVONIX has a beta of 2.63, indicating that its share price is 163% more volatile than the S&P 500.

Summary

Tokyo Electron beats NOVONIX on 7 of the 10 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 NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.