Shoals Technologies Group (NASDAQ:SHLS – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Shoals Technologies Group and SkyWater Technology, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoals Technologies Group | 4 | 4 | 11 | 0 | 2.37 |
| SkyWater Technology | 0 | 0 | 4 | 0 | 3.00 |
Shoals Technologies Group presently has a consensus price target of $11.76, suggesting a potential upside of 129.33%. SkyWater Technology has a consensus price target of $12.00, suggesting a potential upside of 42.35%. Given Shoals Technologies Group’s higher probable upside, equities analysts clearly believe Shoals Technologies Group is more favorable than SkyWater Technology.
Risk and Volatility
Institutional and Insider Ownership
70.0% of SkyWater Technology shares are held by institutional investors. 1.7% of Shoals Technologies Group shares are held by insiders. Comparatively, 42.5% of SkyWater Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Shoals Technologies Group and SkyWater Technology’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shoals Technologies Group | $488.94 million | 1.79 | $39.97 million | $0.18 | 28.50 |
| SkyWater Technology | $323.74 million | 1.23 | -$30.76 million | ($0.69) | -12.22 |
Shoals Technologies Group has higher revenue and earnings than SkyWater Technology. SkyWater Technology 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 SkyWater Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shoals Technologies Group | 5.13% | 12.77% | 8.26% |
| SkyWater Technology | -10.73% | -32.59% | -6.66% |
Summary
Shoals Technologies Group beats SkyWater Technology on 10 of the 14 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 SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
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