Analyzing ASE Technology (NYSE:ASX) and Shoals Technologies Group (NASDAQ:SHLS)

ASE Technology (NYSE:ASXGet Rating) and Shoals Technologies Group (NASDAQ:SHLSGet Rating) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

6.6% of ASE Technology shares are owned by institutional investors. Comparatively, 63.3% of Shoals Technologies Group shares are owned by institutional investors. 22.9% of ASE Technology shares are owned by insiders. Comparatively, 1.7% of Shoals Technologies Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for ASE Technology and Shoals Technologies Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASE Technology 0 3 0 0 2.00
Shoals Technologies Group 1 6 6 0 2.38

ASE Technology currently has a consensus price target of $8.10, suggesting a potential upside of 45.95%. Shoals Technologies Group has a consensus price target of $28.64, suggesting a potential upside of 24.81%. Given ASE Technology’s higher possible upside, equities analysts clearly believe ASE Technology is more favorable than Shoals Technologies Group.

Valuation and Earnings

This table compares ASE Technology and Shoals Technologies Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ASE Technology $20.41 billion 0.59 $2.17 billion $1.19 4.66
Shoals Technologies Group $213.91 million 17.94 $2.35 million $0.04 573.89

ASE Technology has higher revenue and earnings than Shoals Technologies Group. ASE Technology is trading at a lower price-to-earnings ratio than Shoals Technologies Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ASE Technology and Shoals Technologies Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASE Technology 11.80% 27.91% 10.84%
Shoals Technologies Group 3.08% -709.22% 4.63%

Volatility & Risk

ASE Technology has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500.

Summary

ASE Technology beats Shoals Technologies Group on 8 of the 14 factors compared between the two stocks.

About ASE Technology

(Get Rating)

ASE Technology Holding Co., Ltd. provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, rest of Asia, Europe, and internationally. It offers packaging services, including flip chip ball grid array (BGA) and chip scale package (CSP), advanced chip scale packages, quad flat packages, low profile and thin quad flat packages, bump chip carrier and quad flat no-lead (QFN) packages, advanced QFN packages, plastic BGAs, and 3D chip packages; stacked die solutions in various packages; and copper and silver wire bonding solutions. The company also provides advanced packages, such as flip chip BGA; heat-spreader FCBGA; flip-chip CSP; hybrid FCCSP; flip chip package in package and package on package (POP); advanced single sided substrate; high-bandwidth POP; fan-out wafer-level packaging; SESUB; and 2.5D silicon interposer. In addition, it offers IC wire bonding packages; system-in-package products (SiP) and modules; and interconnect materials, as well as assembles automotive electronic products. Further, the company provides a range of semiconductor testing services, including front-end engineering testing, wafer probing, logic/mixed-signal/RF module and SiP/MEMS/discrete final testing, and other test-related services, as well as drop shipment services. Additionally, it develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. The company was incorporated in 1984 and is headquartered in Kaohsiung, Taiwan.

About Shoals Technologies Group

(Get Rating)

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. It produces EBOS components, including cable assemblies, inline fuses, combiners, disconnects, recombiners, wireless monitoring systems, junction boxes, transition enclosures, splice boxes, wire management solutions, and IV curve benchmarking devices. The company also sells EV Charging solutions for public and fleet electric vehicle charging stations; and EBOS systems. It sells its products principally to engineering, procurement, and construction firms that build solar energy projects and install electric vehicle charging stations. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

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