SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and Microvast (NASDAQ:MVST – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.
Valuation and Earnings
This table compares SolarEdge Technologies and Microvast”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarEdge Technologies | $1.32 billion | 1.12 | -$405.45 million | ($3.80) | -6.28 |
| Microvast | $427.52 million | 0.20 | -$29.22 million | ($0.22) | -0.99 |
Microvast has lower revenue, but higher earnings than SolarEdge Technologies. SolarEdge Technologies is trading at a lower price-to-earnings ratio than Microvast, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
95.1% of SolarEdge Technologies shares are owned by institutional investors. Comparatively, 20.7% of Microvast shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by insiders. Comparatively, 37.0% of Microvast shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for SolarEdge Technologies and Microvast, as provided by MarketBeat.com.
| 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 currently has a consensus target price of $36.93, indicating a potential upside of 54.86%. Microvast has a consensus target price of $3.00, indicating a potential upside of 1,282.49%. Given Microvast’s stronger consensus rating and higher probable upside, analysts plainly 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 battery systems. Its products include battery cells, modules and packs, along with related systems designed to support integration and operation. The company serves commercial and specialty vehicle markets, including applications such as buses, trucks and other transportation equipment. It also develops battery solutions for energy storage and other industrial uses. Founded in 2006, Microvast has operations serving customers in North America, Europe and Asia.
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