Comparing First Solar (NASDAQ:FSLR) & FTC Solar (NASDAQ:FTCI)

First Solar (NASDAQ:FSLR) and FTC Solar (NASDAQ:FTCI) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Solar	32.41%	17.56%	11.46%
FTC Solar	-82.90%	-98.67%	-44.11%

Valuation and Earnings

This table compares First Solar and FTC Solar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Solar	$4.26 billion	4.01	$830.78 million	$11.76	13.54
FTC Solar	$55.57 million	0.95	-$50.29 million	($3.74)	-1.07

First Solar has higher revenue and earnings than FTC Solar. FTC Solar is trading at a lower price-to-earnings ratio than First Solar, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

First Solar has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for First Solar and FTC Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Solar	1	5	24	2	2.84
FTC Solar	0	2	2	0	2.50

First Solar currently has a consensus target price of $227.37, indicating a potential upside of 42.75%. FTC Solar has a consensus target price of $5.00, indicating a potential upside of 24.38%. Given First Solar’s stronger consensus rating and higher probable upside, research analysts plainly believe First Solar is more favorable than FTC Solar.

Institutional and Insider Ownership

92.1% of First Solar shares are held by institutional investors. Comparatively, 45.4% of FTC Solar shares are held by institutional investors. 0.5% of First Solar shares are held by company insiders. Comparatively, 24.9% of FTC Solar shares are held by company 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.

Summary

First Solar beats FTC Solar on 14 of the 15 factors compared between the two stocks.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.

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.