Emeren Group (NYSE:SOL) and TOYO (NASDAQ:TOYO) Head to Head Review

TOYO (NASDAQ:TOYO) and Emeren Group (NYSE:SOL) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

84.6% of TOYO shares are held by institutional investors. Comparatively, 44.1% of Emeren Group shares are held by institutional investors. 0.3% of TOYO shares are held by insiders. Comparatively, 37.3% of Emeren Group 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 TOYO and Emeren Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOYO	$176.96 million	1.29	$40.61 million	N/A	N/A
Emeren Group	$92.07 million	1.08	-$12.48 million	($0.18)	-10.80

TOYO has higher revenue and earnings than Emeren Group.

Analyst Recommendations

This is a breakdown of recent recommendations for TOYO and Emeren Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOYO	0	1	0	0	2.00
Emeren Group	1	0	2	0	2.33

Emeren Group has a consensus target price of $4.50, suggesting a potential upside of 131.48%. Given Emeren Group’s stronger consensus rating and higher possible upside, analysts clearly believe Emeren Group is more favorable than TOYO.

Volatility & Risk

TOYO has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500. Comparatively, Emeren Group has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Profitability

This table compares TOYO and Emeren Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOYO	N/A	N/A	N/A
Emeren Group	-12.82%	-2.76%	-2.02%

Summary

TOYO beats Emeren Group on 7 of the 12 factors compared between the two stocks.

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.

About Emeren Group

Emeren Group Ltd, together with its subsidiaries, develops, builds, and sells solar power projects. It owns and operates 3-gigawatt pipeline of projects and independent power producer assets, as well as a 10-gigawatt pipeline of storage pipeline. The company 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, the United States, the United Kingdom, Germany, France, Poland, Italy, and Hungary. 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 Norwalk, Connecticut.