Critical Comparison: SMA Solar Technology (OTCMKTS:SMTGY) and FTC Solar (NASDAQ:FTCI)

FTC Solar (NASDAQ:FTCI) and SMA Solar Technology (OTCMKTS:SMTGY) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares FTC Solar and SMA Solar Technology’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTC Solar	$127.00 million	0.37	-$50.29 million	($0.43)	-0.88
SMA Solar Technology	N/A	N/A	N/A	N/A	N/A

SMA Solar Technology has lower revenue, but higher earnings than FTC Solar.

Analyst Ratings

This is a breakdown of recent ratings for FTC Solar and SMA Solar Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTC Solar	0	5	1	1	2.43
SMA Solar Technology	0	0	0	0	N/A

FTC Solar presently has a consensus price target of $1.49, suggesting a potential upside of 292.03%. Given FTC Solar’s higher probable upside, analysts clearly believe FTC Solar is more favorable than SMA Solar Technology.

Institutional and Insider Ownership

45.4% of FTC Solar shares are owned by institutional investors. 29.7% of FTC Solar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares FTC Solar and SMA Solar Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTC Solar	-39.60%	-59.79%	-31.71%
SMA Solar Technology	N/A	N/A	N/A

Summary

FTC Solar beats SMA Solar Technology on 6 of the 9 factors compared between the two stocks.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.

About SMA Solar Technology

SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally. It operates through Home Solutions, Commercial and Industrial Solutions, and Large Scale and Project Solutions segments. The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters. It also provides E-mobility charging solutions; monitoring and control solutions for PV systems; and energy data services, as well as digital solutions to design, operate, and service PV systems and energy systems. The company was formerly known as SMA Technologie AG and changed its name to SMA Solar Technology AG in June 2008. SMA Solar Technology AG was founded in 1981 and is headquartered in Niestetal, Germany.