Analyzing Tokyo Electron (OTC:TOELY) and Everspin Technologies (NASDAQ:MRAM)

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

Insider and Institutional Ownership

1.3% of Tokyo Electron shares are held by institutional investors. Comparatively, 44.7% of Everspin Technologies shares are held by institutional investors. 6.1% of Everspin Technologies 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.

Profitability

This table compares Tokyo Electron and Everspin Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	22.63%	28.75%	20.52%
Everspin Technologies	2.85%	2.74%	2.27%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$12.33 billion	5.62	$2.51 billion	$3.75	20.05
Everspin Technologies	$53.87 million	2.29	$9.05 million	$0.02	280.50

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Tokyo Electron and Everspin Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
Everspin Technologies	0	0	2	0	3.00

Everspin Technologies has a consensus target price of $9.00, indicating a potential upside of 60.43%. Given Everspin Technologies’ higher probable upside, analysts plainly believe Everspin Technologies is more favorable than Tokyo Electron.

Volatility and Risk

Tokyo Electron has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Everspin Technologies has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Summary

Tokyo Electron beats Everspin Technologies on 10 of the 15 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 Everspin Technologies

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.