Analyzing SolarEdge Technologies (NASDAQ:SEDG) and ChargePoint (NYSE:CHPT)

ChargePoint (NYSE:CHPT) and SolarEdge Technologies (NASDAQ:SEDG) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

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%

Insider and Institutional Ownership

37.8% of ChargePoint shares are owned by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are owned by institutional investors. 4.2% of ChargePoint shares are owned by insiders. Comparatively, 1.0% of SolarEdge Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares ChargePoint and SolarEdge Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$411.22 million	0.54	-$220.20 million	($7.18)	-1.15
SolarEdge Technologies	$1.33 billion	1.46	-$405.45 million	($4.50)	-7.03

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.

Analyst Recommendations

This is a summary of recent 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 14.32%. SolarEdge Technologies has a consensus price target of $38.53, indicating a potential upside of 21.79%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe SolarEdge Technologies is more favorable than ChargePoint.

Volatility and Risk

ChargePoint has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

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.