ChargePoint (NYSE:CHPT – Get Free Report) and SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Earnings and Valuation
This table compares ChargePoint and SolarEdge Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ChargePoint | $411.22 million | 0.47 | -$220.20 million | ($7.18) | -1.00 |
| SolarEdge Technologies | $1.18 billion | 1.61 | -$405.45 million | ($4.50) | -6.90 |
ChargePoint has higher earnings, but lower revenue than SolarEdge Technologies. SolarEdge Technologies is trading at a lower price-to-earnings ratio than ChargePoint, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
37.8% of ChargePoint shares are held by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are held by institutional investors. 4.2% of ChargePoint shares are held by insiders. Comparatively, 1.0% of SolarEdge Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and recommmendations for ChargePoint and SolarEdge Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ChargePoint | 3 | 7 | 0 | 0 | 1.70 |
| SolarEdge Technologies | 5 | 11 | 2 | 0 | 1.83 |
ChargePoint currently has a consensus price target of $7.07, indicating a potential downside of 1.10%. SolarEdge Technologies has a consensus price target of $38.33, indicating a potential upside of 23.42%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe SolarEdge Technologies is more favorable than ChargePoint.
Volatility & Risk
ChargePoint has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Profitability
This table compares ChargePoint and SolarEdge Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ChargePoint | -40.59% | -3,366.29% | -15.95% |
| SolarEdge Technologies | -20.29% | -29.17% | -5.62% |
Summary
SolarEdge Technologies beats ChargePoint on 10 of the 14 factors compared between the two stocks.
About ChargePoint
ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.
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.
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