Contrasting SolarEdge Technologies (NASDAQ:SEDG) and Microvast (NASDAQ:MVST)

SolarEdge Technologies (NASDAQ:SEDG) and Microvast (NASDAQ:MVST) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, profitability, valuation and earnings.

Insider and Institutional Ownership

95.1% of SolarEdge Technologies shares are held by institutional investors. Comparatively, 20.7% of Microvast shares are held by institutional investors. 1.0% of SolarEdge Technologies shares are held by company insiders. Comparatively, 37.0% of Microvast shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarEdge Technologies	$1.18 billion	1.39	-$405.45 million	($3.80)	-7.02
Microvast	$427.52 million	0.24	-$29.22 million	($0.02)	-13.20

Microvast has lower revenue, but higher earnings than SolarEdge Technologies. Microvast is trading at a lower price-to-earnings ratio than SolarEdge Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for SolarEdge Technologies and Microvast, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	5	11	2	0	1.83
Microvast	1	1	2	0	2.25

SolarEdge Technologies presently has a consensus price target of $36.93, suggesting a potential upside of 38.48%. Microvast has a consensus price target of $3.00, suggesting a potential upside of 1,036.36%. Given Microvast’s stronger consensus rating and higher probable upside, analysts clearly believe Microvast is more favorable than SolarEdge Technologies.

Risk & Volatility

SolarEdge Technologies has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Microvast has a beta of 3.72, indicating that its share price is 272% more volatile than the S&P 500.

Profitability

This table compares SolarEdge Technologies and Microvast’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarEdge Technologies	-17.34%	-19.80%	-3.68%
Microvast	-8.29%	-28.31%	-13.96%

Summary

Microvast beats SolarEdge Technologies on 8 of the 13 factors compared between the two stocks.

About SolarEdge Technologies

SolarEdge Technologies develops smart energy technologies for residential, commercial and utility-scale applications. Founded in 2006, the company is known for its DC-optimized inverter system, which combines power optimizers with inverters to help manage solar energy production at the panel level. Its product portfolio includes solar inverters and power optimizers, energy storage systems, monitoring and energy-management software, electric-vehicle charging equipment and related services. These offerings are designed to support the generation, storage and use of electricity from solar and other energy sources.

About Microvast

Microvast Holdings, Inc. develops and manufactures lithium-ion battery technologies and energy storage solutions. The company offers battery cells, modules and packs, along with related battery components and systems designed for commercial vehicles, specialty vehicles, passenger vehicles and stationary energy storage applications. Microvast emphasizes a vertically integrated approach that spans battery materials, cell development, manufacturing and system integration. Its product portfolio includes battery technologies based on different chemistries and form factors, allowing it to serve applications with varying requirements for energy density, power, safety, charging performance and operating life.