Shoals Technologies Group (NASDAQ:SHLS – Get Free Report) and Ascent Solar Technologies (NASDAQ:ASTI – Get Free Report) are both small-cap energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
10.6% of Ascent Solar Technologies shares are held by institutional investors. 1.7% of Shoals Technologies Group shares are held by company insiders. Comparatively, 10.2% of Ascent Solar Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Shoals Technologies Group and Ascent Solar Technologies”s top-line 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 | 3.96 | $24.13 million | $0.20 | 47.20 |
| Ascent Solar Technologies | $40,000.00 | 587.57 | -$9.13 million | ($2.92) | -1.71 |
Shoals Technologies Group has higher revenue and earnings than Ascent Solar Technologies. Ascent Solar Technologies 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 Ascent Solar Technologies’ 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% |
| Ascent Solar Technologies | N/A | -239.69% | -111.53% |
Risk & Volatility
Shoals Technologies Group has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Ascent Solar Technologies has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Shoals Technologies Group and Ascent Solar Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoals Technologies Group | 1 | 7 | 10 | 0 | 2.50 |
| Ascent Solar Technologies | 1 | 0 | 0 | 0 | 1.00 |
Shoals Technologies Group presently has a consensus target price of $9.40, suggesting a potential downside of 0.42%. Given Shoals Technologies Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe Shoals Technologies Group is more favorable than Ascent Solar Technologies.
Summary
Shoals Technologies Group beats Ascent Solar Technologies on 11 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 Ascent Solar Technologies
Ascent Solar Technologies, Inc., a solar technology company, engages in the manufacture and sale of photovoltaic solar modules in the United States. The company markets and sells its products through OEMs, system integrators, distributors, retailers, and value-added resellers. It serves agrivoltaics, aerospace, satellites, near earth orbiting vehicles, and fixed wing unmanned aerial vehicles. Ascent Solar Technologies, Inc. was incorporated in 2005 and is headquartered in Thornton, Colorado.
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