Analyzing Shoals Technologies Group (NASDAQ:SHLS) and Vivopower International (NASDAQ:VVPR)

Vivopower International (NASDAQ:VVPR) and Shoals Technologies Group (NASDAQ:SHLS) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Volatility and Risk

Vivopower International has a beta of -1.68, suggesting that its share price is 268% less volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Vivopower International and Shoals Technologies Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivopower International	1	0	0	0	1.00
Shoals Technologies Group	1	6	10	0	2.53

Shoals Technologies Group has a consensus price target of $9.40, indicating a potential downside of 5.05%. Given Shoals Technologies Group’s stronger consensus rating and higher probable upside, analysts clearly believe Shoals Technologies Group is more favorable than Vivopower International.

Earnings and Valuation

This table compares Vivopower International and Shoals Technologies Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivopower International	$60,000.00	536.70	-$12.79 million	N/A	N/A
Shoals Technologies Group	$399.21 million	4.15	$24.13 million	$0.20	49.50

Shoals Technologies Group has higher revenue and earnings than Vivopower International.

Insider and Institutional Ownership

15.8% of Vivopower International shares are owned by institutional investors. 9.1% of Vivopower International shares are owned by company insiders. Comparatively, 0.5% of Shoals Technologies Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Vivopower International and Shoals Technologies Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivopower International	N/A	N/A	N/A
Shoals Technologies Group	7.66%	8.50%	6.01%

Summary

Shoals Technologies Group beats Vivopower International on 9 of the 12 factors compared between the two stocks.

About Vivopower International

VivoPower International PLC, together with its subsidiaries, operates as a sustainable energy solutions company in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates. It operates through Critical Power Services, Electric Vehicles, Sustainable Energy Solutions, and Solar Development segments. The Critical Power Services segment offers energy infrastructure generation and distribution solutions, including the design, supply, installation, and maintenance of power and control systems to a range of government, commercial, and industrial customers. The Electric Vehicles segment designs and builds electric battery conversion kits to replace internal combustion engines for customers in the mining, infrastructure, utilities, and government services sectors. The Sustainable Energy Solutions segment engages in the design, evaluation, sale, and implementation of renewable energy infrastructure. The Solar Development segment comprises solar projects. The company was founded in 2014 and is headquartered in London, the United Kingdom.

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.