Contrasting SolarEdge Technologies (NASDAQ:SEDG) and Maxeon Solar Technologies (NASDAQ:MAXN)

SolarEdge Technologies (NASDAQ:SEDGGet Free Report) and Maxeon Solar Technologies (NASDAQ:MAXNGet Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Earnings and Valuation

This table compares SolarEdge Technologies and Maxeon Solar Technologies”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SolarEdge Technologies $1.18 billion 2.69 -$405.45 million ($6.13) -8.54
Maxeon Solar Technologies $176.41 million 0.07 -$614.30 million ($163.07) -0.00

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

Volatility and Risk

SolarEdge Technologies has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Maxeon Solar Technologies has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
SolarEdge Technologies -28.56% -38.66% -7.72%
Maxeon Solar Technologies N/A N/A N/A

Institutional & Insider Ownership

95.1% of SolarEdge Technologies shares are held by institutional investors. Comparatively, 47.7% of Maxeon Solar Technologies shares are held by institutional investors. 1.0% of SolarEdge Technologies shares are held by insiders. Comparatively, 0.9% of Maxeon Solar 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.

Analyst Ratings

This is a breakdown of recent recommendations for SolarEdge Technologies and Maxeon Solar Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarEdge Technologies 6 13 1 0 1.75
Maxeon Solar Technologies 1 0 0 0 1.00

SolarEdge Technologies currently has a consensus target price of $38.69, indicating a potential downside of 26.08%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe SolarEdge Technologies is more favorable than Maxeon Solar Technologies.

Summary

SolarEdge Technologies beats Maxeon Solar Technologies on 10 of the 14 factors compared between the two stocks.

About SolarEdge Technologies

(Get Free Report)

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 Maxeon Solar Technologies

(Get Free Report)

Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.

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