Solaredge Technologies (NASDAQ:SEDG) and Monolithic Power Systems (NASDAQ:MPWR) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Earnings & Valuation
This table compares Solaredge Technologies and Monolithic Power Systems’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solaredge Technologies | $937.24 million | 4.89 | $128.83 million | $2.69 | 35.04 |
| Monolithic Power Systems | $582.38 million | 13.31 | $105.27 million | $2.39 | 74.65 |
Solaredge Technologies has higher revenue and earnings than Monolithic Power Systems. Solaredge Technologies is trading at a lower price-to-earnings ratio than Monolithic Power Systems, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Solaredge Technologies has a beta of 0.02, meaning that its share price is 98% less volatile than the S&P 500. Comparatively, Monolithic Power Systems has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Solaredge Technologies and Monolithic Power Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solaredge Technologies | 0 | 3 | 9 | 0 | 2.75 |
| Monolithic Power Systems | 0 | 1 | 4 | 0 | 2.80 |
Solaredge Technologies currently has a consensus price target of $89.58, suggesting a potential downside of 4.96%. Monolithic Power Systems has a consensus price target of $165.00, suggesting a potential downside of 7.52%. Given Solaredge Technologies’ higher probable upside, equities research analysts clearly believe Solaredge Technologies is more favorable than Monolithic Power Systems.
Profitability
This table compares Solaredge Technologies and Monolithic Power Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Solaredge Technologies | 8.39% | 15.89% | 9.08% |
| Monolithic Power Systems | 16.93% | 15.23% | 12.27% |
Institutional & Insider Ownership
79.8% of Solaredge Technologies shares are held by institutional investors. Comparatively, 96.6% of Monolithic Power Systems shares are held by institutional investors. 7.9% of Solaredge Technologies shares are held by insiders. Comparatively, 3.0% of Monolithic Power Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
About Solaredge Technologies
SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. Its SolarEdge system consists of power optimizers, inverters, communication and smart energy management solutions, and a cloud based monitoring platform. The company’s products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations. It also provides pre-sales support, ongoing trainings, and technical support and after installation services; and lithium-ion cells, batteries, and energy storage solutions for various industries, including energy storage systems, residential and commercial solar systems, uninterruptible power supplies, electric vehicles, aerospace, marine, and others. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.
About Monolithic Power Systems
Monolithic Power Systems, Inc. designs, develops, and markets integrated power semiconductor solutions and power delivery architectures for consumer, computing and storage, industrial, automotive, and communications markets. It offers direct current (DC) to DC integrated circuits (ICs) that are used to convert and control voltages of various electronic systems, such as portable electronic devices, wireless LAN access points, computers, monitors, automobiles, and medical equipment. The company also provides lighting control ICs for backlighting that are used in systems, which provide the light source for LCD panels in notebook computers, monitors, car navigation systems, and televisions, as well as for general illumination applications. The company sells its products through third-party distributors, and resellers, as well as directly to original equipment manufacturers, original design manufacturers, and electronic manufacturing service providers in China, Taiwan, Europe, Korea, Southeast Asia, Japan, the United States, and internationally. Monolithic Power Systems, Inc. was founded in 1997 and is headquartered in Kirkland, Washington.
Receive News & Ratings for Solaredge Technologies Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Solaredge Technologies and related companies with MarketBeat.com’s FREE daily email newsletter.
