Analyzing SolarEdge Technologies (NASDAQ:SEDG) & Ultralife (NASDAQ:ULBI)

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

Analyst Ratings

This is a summary of current ratings for Ultralife and SolarEdge Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ultralife	1	0	0	0	1.00
SolarEdge Technologies	5	11	2	0	1.83

SolarEdge Technologies has a consensus price target of $38.53, suggesting a potential upside of 15.65%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe SolarEdge Technologies is more favorable than Ultralife.

Earnings and Valuation

This table compares Ultralife 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
Ultralife	$187.24 million	0.54	-$5.90 million	($0.40)	-15.18
SolarEdge Technologies	$1.18 billion	1.73	-$405.45 million	($4.50)	-7.40

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

Insider and Institutional Ownership

30.7% of Ultralife shares are owned by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are owned by institutional investors. 42.9% of Ultralife shares are owned by company insiders. Comparatively, 1.0% of SolarEdge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ultralife	-3.50%	2.75%	1.66%
SolarEdge Technologies	-20.29%	-29.17%	-5.62%

Volatility and Risk

Ultralife has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Summary

SolarEdge Technologies beats Ultralife on 8 of the 14 factors compared between the two stocks.

About Ultralife

Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide. The company operates in two segments, Battery & Energy Products and Communications Systems. The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium-ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables. The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems. This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers. The company sells its products under the Ultralife, Ultralife HiRate, Ultralife Thin Cell, Ultralife Batteries, Lithium Power, McDowell Research, AMTITM, ABLETM, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE SEASAFE, Excell Battery Group, and Criterion Gauge brands through original equipment manufacturers, and industrial and defense supply distributors. In addition, it sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers. It serves government, defense, and commercial sectors. The company was incorporated in 1990 and is headquartered in Newark, New York.

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.