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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sunworks and SolarEdge Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunworks 0 2 1 0 2.33
SolarEdge Technologies 3 1 9 0 2.46

Sunworks presently has a consensus price target of $2.75, suggesting a potential upside of 61.76%. SolarEdge Technologies has a consensus price target of $23.33, suggesting a potential downside of 14.06%. Given Sunworks’ higher possible upside, analysts plainly believe Sunworks is more favorable than SolarEdge Technologies.

Insider & Institutional Ownership

5.5% of Sunworks shares are held by institutional investors. Comparatively, 57.3% of SolarEdge Technologies shares are held by institutional investors. 5.6% of Sunworks shares are held by insiders. Comparatively, 16.4% of SolarEdge Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Sunworks -14.65% -52.21% -26.80%
SolarEdge Technologies 12.64% 21.01% 14.15%

Volatility and Risk

Sunworks has a beta of 1.71, suggesting that its share price is 71% more volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sunworks $81.34 million 0.47 -$10.35 million N/A N/A
SolarEdge Technologies $481.19 million 2.34 $66.74 million $1.42 19.12

SolarEdge Technologies has higher revenue and earnings than Sunworks.

Summary

SolarEdge Technologies beats Sunworks on 10 of the 12 factors compared between the two stocks.

Sunworks Company Profile

Sunworks, Inc., formerly Solar3D, Inc., provides photo voltaic (PV) based power systems for the residential, commercial and agricultural markets in California and Nevada. The Company, through its operating subsidiaries, designs, arranges financing, integrates, installs and manages systems ranging in size from 2 kilowatt (KW) for residential loads to multi megawatts (MW) systems for larger commercial projects. The Company’s commercial installations include office buildings, manufacturing plants, warehouses and agricultural facilities, such as farms, wineries and dairies. The Company provides a range of installation services to its solar energy customers, including design, system engineering, procurement, permitting, construction, grid connection, warranty, system monitoring and maintenance. The Company has installed over 850 systems in California and Nevada.

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.

Receive News & Ratings for Sunworks Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sunworks Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.