Contrasting SolarEdge Technologies (SEDG) and Its Rivals

SolarEdge Technologies (NASDAQ:SEDG) is one of 216 public companies in the “Electrical Equipment” industry, but how does it contrast to its peers? We will compare SolarEdge Technologies to related businesses based on the strength of its earnings, profitability, institutional ownership, risk, analyst recommendations, valuation and dividends.

Volatility and Risk

SolarEdge Technologies has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, SolarEdge Technologies’ peers have a beta of -20.43, indicating that their average share price is 2,143% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for SolarEdge Technologies and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	5	11	2	0	1.83
SolarEdge Technologies Competitors	2297	5180	7231	439	2.38

SolarEdge Technologies presently has a consensus target price of $36.93, suggesting a potential upside of 42.82%. As a group, “Electrical Equipment” companies have a potential upside of 46.46%. Given SolarEdge Technologies’ peers stronger consensus rating and higher probable upside, analysts clearly believe SolarEdge Technologies has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares SolarEdge Technologies and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SolarEdge Technologies	$1.32 billion	-$405.45 million	-6.81
SolarEdge Technologies Competitors	$2.39 billion	$148.65 million	21.43

SolarEdge Technologies’ peers have higher revenue and earnings than SolarEdge Technologies. SolarEdge Technologies is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. Comparatively, 37.3% of shares of all “Electrical Equipment” companies are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by insiders. Comparatively, 14.5% of shares of all “Electrical Equipment” companies are owned by 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.

Profitability

This table compares SolarEdge Technologies and its peers’ 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%
SolarEdge Technologies Competitors	-380.43%	-44.08%	-7.39%

Summary

SolarEdge Technologies peers beat SolarEdge Technologies on 8 of the 13 factors compared.

SolarEdge Technologies Company Profile

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.