Tokyo Electron (OTC:TOELY) versus Everspin Technologies (NASDAQ:MRAM) Critical Survey

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Technologies	$53.87 million	2.24	$9.05 million	$0.02	275.00
Tokyo Electron	$12.33 billion	5.55	$2.51 billion	$3.75	19.81

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 recent ratings and recommmendations for Everspin Technologies and Tokyo Electron, as provided by MarketBeat.

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

Everspin Technologies presently has a consensus target price of $9.00, indicating a potential upside of 63.64%. Given Everspin Technologies’ higher probable upside, research analysts plainly believe Everspin Technologies is more favorable than Tokyo Electron.

Institutional and Insider Ownership

44.7% of Everspin Technologies shares are owned by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are owned by institutional investors. 6.1% of Everspin Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

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

Summary

Tokyo Electron beats Everspin Technologies on 10 of the 15 factors compared between the two stocks.

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.

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.