Analyzing Nextracker (NASDAQ:NXT) & FTC Solar (NASDAQ:FTCI)

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

Institutional & Insider Ownership

67.4% of Nextracker shares are held by institutional investors. Comparatively, 45.4% of FTC Solar shares are held by institutional investors. 0.6% of Nextracker shares are held by company insiders. Comparatively, 21.0% 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 company is poised for long-term growth.

Valuation & Earnings

This table compares Nextracker and FTC Solar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextracker	$3.10 billion	4.44	$509.17 million	$3.67	25.37
FTC Solar	$47.35 million	2.77	-$48.61 million	($3.92)	-2.25

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

Volatility & Risk

Nextracker has a beta of 2.27, suggesting that its stock price is 127% more volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextracker	17.55%	37.02%	18.44%
FTC Solar	-73.04%	-262.78%	-55.79%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Nextracker and FTC Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextracker	0	10	15	1	2.65
FTC Solar	1	2	1	0	2.00

Nextracker currently has a consensus price target of $70.35, indicating a potential downside of 24.45%. FTC Solar has a consensus price target of $4.25, indicating a potential downside of 51.81%. Given Nextracker’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Nextracker is more favorable than FTC Solar.

Summary

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

About Nextracker

Nextracker Inc., an energy solutions company, provides solar tracker and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. was formerly a subsidiary of Flex Ltd.

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.