SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and SiTime (NASDAQ:SITM – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Profitability
This table compares SolarEdge Technologies and SiTime’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarEdge Technologies | -192.13% | -95.05% | -41.78% |
| SiTime | -46.18% | -10.12% | -7.86% |
Institutional & Insider Ownership
95.1% of SolarEdge Technologies shares are owned by institutional investors. Comparatively, 84.3% of SiTime shares are owned by institutional investors. 0.7% of SolarEdge Technologies shares are owned by insiders. Comparatively, 2.3% of SiTime shares are owned by 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarEdge Technologies | 9 | 15 | 3 | 1 | 1.86 |
| SiTime | 1 | 0 | 4 | 0 | 2.60 |
SolarEdge Technologies currently has a consensus price target of $21.80, suggesting a potential upside of 48.22%. SiTime has a consensus price target of $232.00, suggesting a potential upside of 94.58%. Given SiTime’s stronger consensus rating and higher probable upside, analysts clearly believe SiTime is more favorable than SolarEdge Technologies.
Earnings and Valuation
This table compares SolarEdge Technologies and SiTime”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarEdge Technologies | $901.46 million | 0.96 | $34.33 million | ($31.19) | -0.47 |
| SiTime | $202.70 million | 13.88 | -$93.60 million | ($4.05) | -29.44 |
SolarEdge Technologies has higher revenue and earnings than SiTime. SiTime is trading at a lower price-to-earnings ratio than SolarEdge Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SolarEdge Technologies has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500. Comparatively, SiTime has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.
Summary
SiTime beats SolarEdge Technologies on 10 of the 15 factors compared between the two stocks.
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.
About SiTime
SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.
Receive News & Ratings for SolarEdge Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SolarEdge Technologies and related companies with MarketBeat.com's FREE daily email newsletter.
