Comparing Kulicke and Soffa Industries (NASDAQ:KLIC) and Shoals Technologies Group (NASDAQ:SHLS)

Kulicke and Soffa Industries (NASDAQ:KLIC) and Shoals Technologies Group (NASDAQ:SHLS) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kulicke and Soffa Industries	-7.94%	0.61%	0.47%
Shoals Technologies Group	5.13%	12.75%	8.38%

Institutional and Insider Ownership

98.2% of Kulicke and Soffa Industries shares are owned by institutional investors. 0.0% of Kulicke and Soffa Industries shares are owned by company insiders. Comparatively, 1.7% 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 stock will outperform the market over the long term.

Volatility & Risk

Kulicke and Soffa Industries has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares Kulicke and Soffa Industries and Shoals Technologies Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kulicke and Soffa Industries	$742.49 million	3.22	$57.15 million	($1.19)	-36.81
Shoals Technologies Group	$454.70 million	2.02	$39.97 million	$0.18	29.94

Kulicke and Soffa Industries has higher revenue and earnings than Shoals Technologies Group. Kulicke and Soffa Industries 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.

Analyst Ratings

This is a breakdown of current recommendations for Kulicke and Soffa Industries and Shoals Technologies Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kulicke and Soffa Industries	0	3	1	0	2.25
Shoals Technologies Group	4	4	11	0	2.37

Kulicke and Soffa Industries presently has a consensus target price of $47.33, suggesting a potential upside of 8.04%. Shoals Technologies Group has a consensus target price of $11.76, suggesting a potential upside of 118.27%. Given Shoals Technologies Group’s stronger consensus rating and higher possible upside, analysts clearly believe Shoals Technologies Group is more favorable than Kulicke and Soffa Industries.

Summary

Shoals Technologies Group beats Kulicke and Soffa Industries on 10 of the 14 factors compared between the two stocks.

About Kulicke and Soffa Industries

Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through four segments: Ball Bonding Equipment, Wedge Bonding Equipment, Advanced Solutions, and Aftermarket Products and Services (APS). The company offers ball bonding equipment, wafer level bonding equipment, wedge bonding equipment; and advanced display, die-attach, and thermocompression systems and solutions, as well as tools, spares and services for equipment. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, foundry service providers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. The company was founded in 1951 and is headquartered in Fort Washington, Pennsylvania.

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.