Head to Head Comparison: First Solar (NASDAQ:FSLR) & Shoals Technologies Group (NASDAQ:SHLS)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	5.27%	7.57%	5.32%
First Solar	28.95%	15.57%	10.36%

Risk and Volatility

Shoals Technologies Group has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Institutional & Insider Ownership

92.1% of First Solar shares are held by institutional investors. 1.7% of Shoals Technologies Group shares are held by insiders. Comparatively, 0.5% of First Solar shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Shoals Technologies Group and First Solar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$399.21 million	4.55	$24.13 million	$0.13	83.46
First Solar	$4.21 billion	6.23	$1.29 billion	$11.69	20.91

First Solar has higher revenue and earnings than Shoals Technologies Group. First Solar 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.

Analyst Ratings

This is a breakdown of recent recommendations for Shoals Technologies Group and First Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	2	5	14	0	2.57
First Solar	1	4	23	2	2.87

Shoals Technologies Group presently has a consensus target price of $7.47, indicating a potential downside of 31.12%. First Solar has a consensus target price of $238.72, indicating a potential downside of 2.32%. Given First Solar’s stronger consensus rating and higher possible upside, analysts clearly believe First Solar is more favorable than Shoals Technologies Group.

Summary

First Solar beats Shoals Technologies Group on 12 of the 15 factors compared between the two stocks.

About Shoals Technologies Group

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services. It provides EBOS components, including combiners; plug-n-play branch connectors and inline fuses; AC disconnects; recombiners; wireless monitoring; junction boxes; wire management; EV power cabinets; and battery energy storage systems cabinets, as well as cable assemblies, transition enclosures, and splice boxes. In addition, the company offers eMobility solutions, such as a power center, which combines equipment needed to protect the charging equipment and transform voltage levels from the electric utility to those needed on the respective site; quick connect solutions for chargers to connect to the Shoals system; big lead assembly (BLA) technology in the EV space to connect multiple chargers to a single power center; and a raceway system that protects the above ground EV BLAs in walk over and drive over applications. Further, it provides Snapshot IV, a solar operations and maintenance solution that monitors the specific voltage and current of individual solar panels and compares the results against the manufacturer's projected performance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

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.