Shoals Technologies Group (NASDAQ:SHLS) and Solar Integrated Roofing (OTCMKTS:SIRC) Critical Review

Shoals Technologies Group (NASDAQ:SHLS) and Solar Integrated Roofing (OTCMKTS:SIRC) are both small-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	6.27%	10.03%	6.63%
Solar Integrated Roofing	N/A	N/A	N/A

Valuation & Earnings

This table compares Shoals Technologies Group and Solar Integrated Roofing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$475.33 million	3.67	$33.57 million	$0.20	52.15
Solar Integrated Roofing	$37.31 million	0.00	-$27.40 million	($0.03)	N/A

Shoals Technologies Group has higher revenue and earnings than Solar Integrated Roofing. Solar Integrated Roofing 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 summary of current ratings and price targets for Shoals Technologies Group and Solar Integrated Roofing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	0	6	10	0	2.62
Solar Integrated Roofing	0	0	0	0	0.00

Shoals Technologies Group presently has a consensus target price of $10.46, suggesting a potential upside of 0.30%. Given Shoals Technologies Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Shoals Technologies Group is more favorable than Solar Integrated Roofing.

Volatility and Risk

Shoals Technologies Group has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, Solar Integrated Roofing has a beta of -1.36, indicating that its stock price is 236% less volatile than the S&P 500.

Summary

Shoals Technologies Group beats Solar Integrated Roofing on 10 of the 10 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 Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.