Critical Analysis: SolarEdge Technologies (NASDAQ:SEDG) and SMA Solar Technology (OTCMKTS:SMTGY)

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

Earnings & Valuation

This table compares SMA Solar Technology and SolarEdge Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMA Solar Technology	N/A	N/A	N/A	N/A	N/A
SolarEdge Technologies	$1.05 billion	1.94	-$1.81 billion	($9.67)	-3.51

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

Insider & Institutional Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. 0.7% of SolarEdge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMA Solar Technology	N/A	N/A	N/A
SolarEdge Technologies	-53.65%	-77.21%	-17.55%

Analyst Ratings

This is a summary of current ratings for SMA Solar Technology and SolarEdge Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMA Solar Technology	0	0	0	0	0.00
SolarEdge Technologies	9	18	1	0	1.71

SolarEdge Technologies has a consensus price target of $25.21, indicating a potential downside of 25.65%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe SolarEdge Technologies is more favorable than SMA Solar Technology.

Summary

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

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.

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.