Comparing SolarEdge Technologies (NASDAQ:SEDG) and Tigo Energy (NASDAQ:TYGO)

Tigo Energy (NASDAQ:TYGO) and SolarEdge Technologies (NASDAQ:SEDG) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, analyst recommendations, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tigo Energy and SolarEdge Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tigo Energy	0	0	2	0	3.00
SolarEdge Technologies	10	17	0	0	1.63

Tigo Energy presently has a consensus target price of $4.50, suggesting a potential upside of 206.12%. SolarEdge Technologies has a consensus target price of $18.20, suggesting a potential downside of 46.71%. Given Tigo Energy’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Tigo Energy is more favorable than SolarEdge Technologies.

Institutional and Insider Ownership

15.7% of Tigo Energy shares are held by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are held by institutional investors. 29.6% of Tigo Energy shares are held by insiders. Comparatively, 0.7% of SolarEdge Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Tigo Energy has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, SolarEdge Technologies has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Tigo Energy and SolarEdge Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tigo Energy	-69.01%	-434.06%	-63.64%
SolarEdge Technologies	-177.64%	-191.53%	-49.83%

Earnings & Valuation

This table compares Tigo Energy and SolarEdge Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tigo Energy	$54.01 million	1.79	-$62.75 million	($0.84)	-1.75
SolarEdge Technologies	$901.46 million	2.25	-$1.81 billion	($29.96)	-1.14

Tigo Energy has higher earnings, but lower revenue than SolarEdge Technologies. Tigo Energy is trading at a lower price-to-earnings ratio than SolarEdge Technologies, indicating that it is currently the more affordable of the two stocks.

About Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.

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.