Electrovaya (NASDAQ:ELVA) versus Tokyo Electron (OTCMKTS:TOELY) Financial Analysis

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

Analyst Ratings

This is a summary of current ratings for Electrovaya and Tokyo Electron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electrovaya	0	2	3	1	2.83
Tokyo Electron	0	1	0	0	2.00

Electrovaya presently has a consensus price target of $12.63, indicating a potential upside of 16.04%. Given Electrovaya’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Electrovaya is more favorable than Tokyo Electron.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electrovaya	7.03%	11.35%	6.19%
Tokyo Electron	23.40%	22.98%	17.30%

Earnings and Valuation

This table compares Electrovaya and Tokyo Electron”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electrovaya	$63.83 million	8.44	$3.36 million	$0.12	90.67
Tokyo Electron	$16.23 billion	9.06	$3.82 billion	$4.13	38.02

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

Volatility & Risk

Electrovaya has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.95, indicating that its stock price is 95% more volatile than the S&P 500.

Insider and Institutional Ownership

22.5% of Electrovaya shares are owned by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

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

About Electrovaya

Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as competencies in building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.

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.