American Battery Technology (NASDAQ:ABAT – Get Free Report) and Shoals Technologies Group (NASDAQ:SHLS – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.
Valuation & Earnings
This table compares American Battery Technology and Shoals Technologies Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Battery Technology | $21.74 million | 10.23 | -$73.38 million | ($0.57) | -2.74 |
| Shoals Technologies Group | $475.33 million | 2.67 | $33.57 million | $0.19 | 39.74 |
Shoals Technologies Group has higher revenue and earnings than American Battery Technology. American Battery Technology is trading at a lower price-to-earnings ratio than Shoals Technologies Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares American Battery Technology and Shoals Technologies Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Battery Technology | -337.50% | -64.63% | -61.52% |
| Shoals Technologies Group | 5.41% | 10.07% | 6.38% |
Insider & Institutional Ownership
9.9% of American Battery Technology shares are owned by institutional investors. 7.7% of American Battery Technology shares are owned by company insiders. Comparatively, 0.8% of Shoals Technologies Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
American Battery Technology has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for American Battery Technology and Shoals Technologies Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Battery Technology | 1 | 0 | 1 | 1 | 2.67 |
| Shoals Technologies Group | 0 | 7 | 11 | 0 | 2.61 |
American Battery Technology presently has a consensus price target of $6.00, suggesting a potential upside of 284.62%. Shoals Technologies Group has a consensus price target of $10.80, suggesting a potential upside of 43.05%. Given American Battery Technology’s stronger consensus rating and higher possible upside, analysts clearly believe American Battery Technology is more favorable than Shoals Technologies Group.
Summary
Shoals Technologies Group beats American Battery Technology on 9 of the 15 factors compared between the two stocks.
About American Battery Technology
American Battery Technology Company operates as a battery materials company. The company explores for resources of battery metals, such as such as lithium, nickel, cobalt, and manganese; and develops and commercializes technologies for the extraction of battery metals, as well as commercializes integrated process for the recycling of lithium-ion batteries. The company was formerly known as American Battery Metals Corporation. American Battery Technology Company was incorporated in 2011 and is headquartered in Reno, Nevada.
About Shoals Technologies Group
Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services. It provides EBOS components, including combiners; plug-n-play branch connectors and inline fuses; AC disconnects; recombiners; wireless monitoring; junction boxes; wire management; EV power cabinets; and battery energy storage systems cabinets, as well as cable assemblies, transition enclosures, and splice boxes. In addition, the company offers eMobility solutions, such as a power center, which combines equipment needed to protect the charging equipment and transform voltage levels from the electric utility to those needed on the respective site; quick connect solutions for chargers to connect to the Shoals system; big lead assembly (BLA) technology in the EV space to connect multiple chargers to a single power center; and a raceway system that protects the above ground EV BLAs in walk over and drive over applications. Further, it provides Snapshot IV, a solar operations and maintenance solution that monitors the specific voltage and current of individual solar panels and compares the results against the manufacturer's projected performance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.
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