Head to Head Analysis: Gauzy (NASDAQ:GAUZ) & Tokyo Electron (OTCMKTS:TOELY)

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

Risk and Volatility

Tokyo Electron has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Gauzy has a beta of -0.9, meaning that its stock price is 190% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	22.07%	28.97%	20.90%
Gauzy	-39.63%	-93.64%	-27.62%

Institutional and Insider Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Tokyo Electron and Gauzy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	1	0	1	3.00
Gauzy	0	2	2	0	2.50

Gauzy has a consensus price target of $11.00, suggesting a potential upside of 101.10%. Given Gauzy’s higher probable upside, analysts clearly believe Gauzy is more favorable than Tokyo Electron.

Earnings and Valuation

This table compares Tokyo Electron and Gauzy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tokyo Electron	$15.97 billion	4.61	$3.59 billion	$3.89	20.53
Gauzy	$103.53 million	1.01	-$53.18 million	($2.05)	-2.67

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

Summary

Tokyo Electron beats Gauzy on 12 of the 14 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 Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.