Shoals Technologies Group (NASDAQ:SHLS – Get Free Report) and T1 Energy (NYSE:TE – Get Free Report) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Shoals Technologies Group has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, T1 Energy has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Institutional & Insider Ownership
52.3% of T1 Energy shares are held by institutional investors. 0.5% of Shoals Technologies Group shares are held by insiders. Comparatively, 15.7% of T1 Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoals Technologies Group | 1 | 7 | 10 | 0 | 2.50 |
| T1 Energy | 1 | 1 | 4 | 1 | 2.71 |
Shoals Technologies Group presently has a consensus target price of $9.40, suggesting a potential downside of 9.62%. T1 Energy has a consensus target price of $7.50, suggesting a potential downside of 2.22%. Given T1 Energy’s stronger consensus rating and higher probable upside, analysts clearly believe T1 Energy is more favorable than Shoals Technologies Group.
Valuation & Earnings
This table compares Shoals Technologies Group and T1 Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shoals Technologies Group | $399.21 million | 4.36 | $24.13 million | $0.20 | 52.00 |
| T1 Energy | $2.94 million | 554.04 | -$450.15 million | ($3.78) | -2.03 |
Shoals Technologies Group has higher revenue and earnings than T1 Energy. T1 Energy 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.
Profitability
This table compares Shoals Technologies Group and T1 Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shoals Technologies Group | 7.66% | 8.50% | 6.01% |
| T1 Energy | -133.07% | -121.17% | -14.59% |
Summary
Shoals Technologies Group beats T1 Energy on 9 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 T1 Energy
T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.
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