Financial Analysis: TOYO (NASDAQ:TOYO) & Solar Integrated Roofing (OTCMKTS:SIRC)

Solar Integrated Roofing (OTCMKTS:SIRC) and TOYO (NASDAQ:TOYO) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Solar Integrated Roofing and TOYO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solar Integrated Roofing	N/A	N/A	N/A
TOYO	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Solar Integrated Roofing and TOYO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solar Integrated Roofing	0	0	0	0	0.00
TOYO	1	1	2	0	2.25

TOYO has a consensus price target of $16.50, suggesting a potential upside of 172.73%. Given TOYO’s stronger consensus rating and higher probable upside, analysts plainly believe TOYO is more favorable than Solar Integrated Roofing.

Valuation & Earnings

This table compares Solar Integrated Roofing and TOYO”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solar Integrated Roofing	$37.31 million	0.00	-$27.40 million	($0.03)	N/A
TOYO	$427.38 million	0.53	$39.66 million	$0.75	8.07

TOYO has higher revenue and earnings than Solar Integrated Roofing. Solar Integrated Roofing is trading at a lower price-to-earnings ratio than TOYO, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

84.6% of TOYO shares are held by institutional investors. 4.3% of Solar Integrated Roofing shares are held by insiders. Comparatively, 0.3% of TOYO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Solar Integrated Roofing has a beta of -1.61, suggesting that its stock price is 261% less volatile than the S&P 500. Comparatively, TOYO has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Summary

TOYO beats Solar Integrated Roofing on 8 of the 9 factors compared between the two stocks.

About Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.

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.