SolarEdge Technologies (NASDAQ: SEDG) and SunPower (NASDAQ:SPWRA) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for SolarEdge Technologies and SunPower, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarEdge Technologies 3 1 9 0 2.46
SunPower 0 0 0 0 N/A

SolarEdge Technologies currently has a consensus target price of $23.33, indicating a potential downside of 12.77%. Given SolarEdge Technologies’ higher probable upside, research analysts clearly believe SolarEdge Technologies is more favorable than SunPower.

Profitability

This table compares SolarEdge Technologies and SunPower’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SolarEdge Technologies 12.64% 21.01% 14.15%
SunPower -35.05% -47.78% -10.93%

Valuation & Earnings

This table compares SolarEdge Technologies and SunPower’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SolarEdge Technologies $481.19 million 2.34 $66.74 million $1.42 18.84
SunPower N/A N/A N/A N/A N/A

SolarEdge Technologies has higher revenue and earnings than SunPower.

Institutional and Insider Ownership

57.8% of SolarEdge Technologies shares are owned by institutional investors. 16.4% of SolarEdge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

SolarEdge Technologies beats SunPower on 8 of the 8 factors compared between the two stocks.

SolarEdge Technologies Company Profile

SolarEdge Technologies, Inc. offers an inverter solution for a solar photovoltaic (PV) system. The Company’s products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company’s power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company’s solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.

SunPower Company Profile

SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation. The Company offers solar module technology and solar power systems that are designed to generate electricity over a system life over 25 years; Integrated Smart Energy software solutions that enable customers to manage and optimize the cooperation center of excellence (CCOE) measurement; Installation, construction, and ongoing maintenance and monitoring services; and financing solutions that provide customers a range of options for purchasing or leasing solar products at competitive energy rates. The Company offers a set of residential solutions that deliver value to homeowners and its dealer partners.

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