Vertiv (NYSE:VRT – Get Free Report) and Tigo Energy (NASDAQ:TYGO – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Insider & Institutional Ownership
89.9% of Vertiv shares are owned by institutional investors. Comparatively, 15.7% of Tigo Energy shares are owned by institutional investors. 1.1% of Vertiv shares are owned by company insiders. Comparatively, 26.6% of Tigo Energy 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.
Profitability
This table compares Vertiv and Tigo Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vertiv | 15.09% | 50.47% | 15.87% |
| Tigo Energy | 8.97% | -1.74% | -0.64% |
Valuation and Earnings
This table compares Vertiv and Tigo Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vertiv | $10.23 billion | 7.76 | $1.33 billion | $4.42 | 46.62 |
| Tigo Energy | $103.54 million | 0.60 | -$1.88 million | $0.14 | 5.89 |
Vertiv has higher revenue and earnings than Tigo Energy. Tigo Energy is trading at a lower price-to-earnings ratio than Vertiv, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Vertiv has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, Tigo Energy has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Vertiv and Tigo Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vertiv | 1 | 5 | 23 | 2 | 2.84 |
| Tigo Energy | 1 | 1 | 1 | 0 | 2.00 |
Vertiv presently has a consensus price target of $335.67, indicating a potential upside of 62.89%. Tigo Energy has a consensus price target of $3.73, indicating a potential upside of 352.74%. Given Tigo Energy’s higher probable upside, analysts clearly believe Tigo Energy is more favorable than Vertiv.
Summary
Vertiv beats Tigo Energy on 12 of the 14 factors compared between the two stocks.
About Vertiv
Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.
About Tigo Energy
Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.
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