SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and ChargePoint (NYSE:CHPT – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares SolarEdge Technologies and ChargePoint”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 | 1.61 | -$405.45 million | ($4.50) | -6.90 |
| ChargePoint | $411.22 million | 0.47 | -$220.20 million | ($7.18) | -1.00 |
ChargePoint has lower revenue, but higher earnings 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.
Insider and Institutional Ownership
95.1% of SolarEdge Technologies shares are held by institutional investors. Comparatively, 37.8% of ChargePoint shares are held by institutional investors. 1.0% of SolarEdge Technologies shares are held by insiders. Comparatively, 4.2% of ChargePoint shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
SolarEdge Technologies has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, ChargePoint has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.
Profitability
This table compares SolarEdge Technologies and ChargePoint’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarEdge Technologies | -20.29% | -29.17% | -5.62% |
| ChargePoint | -40.59% | -3,366.29% | -15.95% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for SolarEdge Technologies and ChargePoint, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarEdge Technologies | 5 | 11 | 2 | 0 | 1.83 |
| ChargePoint | 3 | 7 | 0 | 0 | 1.70 |
SolarEdge Technologies presently has a consensus price target of $38.33, suggesting a potential upside of 23.42%. ChargePoint has a consensus price target of $7.07, suggesting a potential downside of 1.10%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe SolarEdge Technologies is more favorable than ChargePoint.
Summary
SolarEdge Technologies beats ChargePoint 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 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.
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