Shoals Technologies Group (NASDAQ:SHLS) versus POET Technologies (OTCMKTS:POETF) Critical Contrast

POET Technologies (OTCMKTS:POETFGet Free Report) and Shoals Technologies Group (NASDAQ:SHLSGet Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Risk & Volatility

POET Technologies has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for POET Technologies and Shoals Technologies Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POET Technologies 0 0 0 0 0.00
Shoals Technologies Group 3 6 14 0 2.48

Shoals Technologies Group has a consensus target price of $10.64, indicating a potential upside of 87.37%. Given Shoals Technologies Group’s stronger consensus rating and higher probable upside, analysts clearly believe Shoals Technologies Group is more favorable than POET Technologies.

Profitability

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

Net Margins Return on Equity Return on Assets
POET Technologies N/A -88.82% -74.05%
Shoals Technologies Group 7.78% 9.83% 6.60%

Earnings & Valuation

This table compares POET Technologies and Shoals Technologies Group”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
POET Technologies $4.43 million 378.15 -$18.17 million ($0.05) -91.80
Shoals Technologies Group $422.66 million 2.24 $39.97 million $0.20 28.40

Shoals Technologies Group has higher revenue and earnings than POET Technologies. POET 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.

Summary

Shoals Technologies Group beats POET Technologies on 11 of the 12 factors compared between the two stocks.

About POET Technologies

(Get Free Report)

POET Technologies, Inc. engages in the designing, developing, manufacturing and sale of opto-electronic solutions for the sensing, data communications and telecommunications markets. It developed POET Optical Interposer platform, which allows the integration of electronic and photonic devices into a single multi-chip module. The company was founded on November 14, 1985 and is headquartered in Toronto, Canada.

About Shoals Technologies Group

(Get Free Report)

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.

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