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

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

Analyst Recommendations

This is a breakdown of current ratings for SolarEdge Technologies and Maxeon Solar Technologies, as provided by MarketBeat.

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

Risk & Volatility

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

Earnings and Valuation

This table compares SolarEdge Technologies and Maxeon Solar Technologies”s top-line revenue, earnings per share 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.

Institutional and Insider Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. Comparatively, 47.7% of Maxeon Solar Technologies shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by company insiders. Comparatively, 0.9% of Maxeon Solar Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

SolarEdge Technologies beats Maxeon Solar Technologies on 10 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 Maxeon Solar Technologies

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.