Contrasting SMA Solar Technology (OTCMKTS:SMTGY) and Shoals Technologies Group (NASDAQ:SHLS)

Shoals Technologies Group (NASDAQ:SHLS) and SMA Solar Technology (OTCMKTS:SMTGY) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares Shoals Technologies Group and SMA Solar Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$399.21 million	3.33	$24.13 million	$0.20	39.75
SMA Solar Technology	N/A	N/A	N/A	N/A	N/A

Shoals Technologies Group has higher revenue and earnings than SMA Solar Technology.

Profitability

This table compares Shoals Technologies Group and SMA Solar Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	7.66%	8.50%	6.01%
SMA Solar Technology	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and price targets for Shoals Technologies Group and SMA Solar Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	2	6	14	1	2.61
SMA Solar Technology	0	0	0	0	0.00

Shoals Technologies Group presently has a consensus target price of $8.70, indicating a potential upside of 9.43%. Given Shoals Technologies Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Shoals Technologies Group is more favorable than SMA Solar Technology.

Summary

Shoals Technologies Group beats SMA Solar Technology on 8 of the 8 factors compared between the two stocks.

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.

About SMA Solar Technology

SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally. It operates through Home Solutions, Commercial and Industrial Solutions, and Large Scale and Project Solutions segments. The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters. It also provides E-mobility charging solutions; monitoring and control solutions for PV systems; and energy data services, as well as digital solutions to design, operate, and service PV systems and energy systems. The company was formerly known as SMA Technologie AG and changed its name to SMA Solar Technology AG in June 2008. SMA Solar Technology AG was founded in 1981 and is headquartered in Niestetal, Germany.