SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and American Superconductor (NASDAQ:AMSC – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Insider & Institutional Ownership
95.1% of SolarEdge Technologies shares are held by institutional investors. Comparatively, 52.3% of American Superconductor shares are held by institutional investors. 1.0% of SolarEdge Technologies shares are held by company insiders. Comparatively, 3.6% of American Superconductor shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares SolarEdge Technologies and American Superconductor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarEdge Technologies | $1.18 billion | 1.70 | -$405.45 million | ($4.50) | -7.26 |
| American Superconductor | $299.15 million | 4.86 | $133.81 million | $3.03 | 9.90 |
American Superconductor has lower revenue, but higher earnings than SolarEdge Technologies. SolarEdge Technologies is trading at a lower price-to-earnings ratio than American Superconductor, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares SolarEdge Technologies and American Superconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarEdge Technologies | -20.29% | -29.17% | -5.62% |
| American Superconductor | 42.56% | 27.41% | 20.63% |
Risk & Volatility
SolarEdge Technologies has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, American Superconductor has a beta of 3.26, suggesting that its stock price is 226% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for SolarEdge Technologies and American Superconductor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarEdge Technologies | 5 | 11 | 2 | 0 | 1.83 |
| American Superconductor | 0 | 2 | 2 | 1 | 2.80 |
SolarEdge Technologies presently has a consensus target price of $39.20, suggesting a potential upside of 19.95%. American Superconductor has a consensus target price of $55.00, suggesting a potential upside of 83.27%. Given American Superconductor’s stronger consensus rating and higher probable upside, analysts clearly believe American Superconductor is more favorable than SolarEdge Technologies.
Summary
American Superconductor beats SolarEdge Technologies on 12 of the 14 factors compared between the two stocks.
About SolarEdge Technologies
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.
About American Superconductor
American Superconductor Corporation, together with its subsidiaries, provides megawatt-scale power resiliency solutions worldwide. The company operates through Grid and Wind segments. The Grid segment offers products and services that enable electric utilities, industrial facilities, and renewable energy project developers to connect, transmit, and distribute power under the Gridtec Solutions brand. It provides transmission planning services, which identify power grid congestion, poor power quality, and other risks; grid interconnection solutions for wind farms and solar power plants, power quality systems, and transmission and distribution cable systems; D-VAR systems used for controlling power flow and voltage in the AC transmission system; actiVAR system, a fast-switching medium-voltage reactive compensation solution; armorVAR system installed for reactive compensation, power factor correction, loss reduction, utility bill savings, and mitigation of common power quality concerns related to power converter-based generation and load devices; and D-VAR volt var optimization (VVO) that serves the distribution power grid market. This segment also offers ship protection systems, which reduce a naval ship’s magnetic signature; and ON board power delivery systems, power generation systems, and propulsion systems; and transformers and rectifiers systems. The Wind segment designs wind turbine systems and licenses these designs to third parties under the Windtec Solutions brand. It also supplies power electronics and software-based control systems, engineered designs, and support services; and provides customer support services to wind turbine manufacturers. This segment’s design portfolio comprises a range of drivetrains and power ratings of 2 megawatts and higher. American Superconductor Corporation was incorporated in 1987 and is headquartered in Ayer, Massachusetts.
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