Critical Review: First Solar (NASDAQ:FSLR) & T1 Energy (NYSE:TE)

T1 Energy (NYSE:TE) and First Solar (NASDAQ:FSLR) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Volatility & Risk

T1 Energy has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Earnings & Valuation

This table compares T1 Energy and First Solar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
T1 Energy	$755.29 million	3.78	-$367.83 million	($2.03)	-5.03
First Solar	$5.22 billion	6.16	$1.53 billion	$15.48	19.33

First Solar has higher revenue and earnings than T1 Energy. T1 Energy is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

52.3% of T1 Energy shares are held by institutional investors. Comparatively, 92.1% of First Solar shares are held by institutional investors. 22.4% of T1 Energy shares are held by company insiders. Comparatively, 0.4% of First Solar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for T1 Energy and First Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
T1 Energy	1	1	4	1	2.71
First Solar	1	12	18	1	2.59

T1 Energy currently has a consensus price target of $8.00, suggesting a potential downside of 21.67%. First Solar has a consensus price target of $247.40, suggesting a potential downside of 17.31%. Given First Solar’s higher probable upside, analysts plainly believe First Solar is more favorable than T1 Energy.

Profitability

This table compares T1 Energy and First Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
T1 Energy	-42.30%	-150.51%	-20.94%
First Solar	30.73%	18.01%	12.57%

Summary

First Solar beats T1 Energy on 11 of the 14 factors compared between the two stocks.

About T1 Energy

T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.