Head to Head Analysis: Aeluma (NASDAQ:ALMU) and TOYO (NASDAQ:TOYO)
by Mitch Edgeman · The Markets DailyAeluma (NASDAQ:ALMU – Get Free Report) and TOYO (NASDAQ:TOYO – Get Free Report) are both small-cap technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.
Institutional and Insider Ownership
84.6% of TOYO shares are owned by institutional investors. 12.8% of Aeluma shares are owned by company insiders. Comparatively, 0.3% of TOYO shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Aeluma and TOYO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aeluma | -205.31% | -18.14% | -17.20% |
| TOYO | N/A | N/A | N/A |
Valuation & Earnings
This table compares Aeluma and TOYO”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aeluma | $4.46 million | 33.02 | -$9.16 million | ($0.52) | -14.66 |
| TOYO | $427.38 million | 0.35 | $39.66 million | $1.20 | 3.29 |
TOYO has higher revenue and earnings than Aeluma. Aeluma is trading at a lower price-to-earnings ratio than TOYO, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Aeluma has a beta of 4.1, indicating that its share price is 310% more volatile than the S&P 500. Comparatively, TOYO has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations for Aeluma and TOYO, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aeluma | 1 | 0 | 3 | 1 | 2.80 |
| TOYO | 0 | 2 | 2 | 0 | 2.50 |
Aeluma presently has a consensus target price of $25.00, suggesting a potential upside of 227.95%. TOYO has a consensus target price of $14.00, suggesting a potential upside of 254.25%. Given TOYO’s higher possible upside, analysts clearly believe TOYO is more favorable than Aeluma.
Summary
TOYO beats Aeluma on 9 of the 15 factors compared between the two stocks.
About Aeluma
Aeluma, Inc. develops optoelectronic and electronic devices in the United States. The company manufactures semiconductor materials and chips using compound semiconductors on diameter substrates that are used to manufacture mass market microelectronics. It offers its devices for use in mobile, automotive, AI, defence and aerospace, communication, AR/VR, and HPC applications, as well as laser emitters, transistors for integrated circuits, quantum photonic circuits, and solar cells applications. Aeluma, Inc. was formerly known as Parc Investments, Inc. and changed its name to Aeluma, Inc. June 2021. The company was founded in 2019 and is headquartered in Goleta, California.
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.