Contrasting Solaredge Technologies (NASDAQ:SEDG) and Qorvo (NASDAQ:QRVO)

Solaredge Technologies (NASDAQ:SEDG) and Qorvo (NASDAQ:QRVO) are both large-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Solaredge Technologies has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Qorvo has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Solaredge Technologies and Qorvo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solaredge Technologies 10.89% 20.76% 11.65%
Qorvo 12.05% 16.10% 10.76%

Valuation & Earnings

This table compares Solaredge Technologies and Qorvo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solaredge Technologies $1.43 billion 9.27 $146.55 million $2.90 90.98
Qorvo $3.24 billion 4.41 $334.33 million $5.71 21.88

Qorvo has higher revenue and earnings than Solaredge Technologies. Qorvo is trading at a lower price-to-earnings ratio than Solaredge Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

87.8% of Solaredge Technologies shares are owned by institutional investors. Comparatively, 85.9% of Qorvo shares are owned by institutional investors. 2.9% of Solaredge Technologies shares are owned by company insiders. Comparatively, 0.7% of Qorvo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Solaredge Technologies and Qorvo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solaredge Technologies 1 8 7 0 2.38
Qorvo 0 4 19 0 2.83

Solaredge Technologies presently has a consensus price target of $192.87, suggesting a potential downside of 26.90%. Qorvo has a consensus price target of $132.86, suggesting a potential upside of 6.32%. Given Qorvo’s stronger consensus rating and higher probable upside, analysts plainly believe Qorvo is more favorable than Solaredge Technologies.

Summary

Qorvo beats Solaredge Technologies on 8 of the 14 factors compared between the two stocks.

Solaredge Technologies Company Profile

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.

Qorvo Company Profile

Qorvo, Inc. develops and commercializes technologies and products for wireless and wired connectivity worldwide. The company operates in two segments, Mobile Products, and Infrastructure and Defense Products. The company offers integrated modules incorporating switches, power amplifiers, filters and duplexers, antenna tuners, RF power management integrated circuits, multimode/multi-band PAs and transmit modules, antenna-plexers, discrete filters and duplexers, discrete switches, and UWB system solutions, as well as envelope tracking power management solutions, antenna control solutions, and UWB system solutions supporting secure, low power, location, and communication services. It also provides integrated solutions that include switch-LNA modules, variable gain amplifiers, and integrated PA Doherty modules for massive multiple-input/multiple-output systems; RF products and compound semiconductor foundry services to defense primes and other global defense and aerospace customers; Wi-Fi customer premises equipment, including power amplifiers, switches, low noise amplifiers, and bulk acoustic wave filters; system-on-a-chip hardware, firmware, and application software for smart home applications; automotive RF connectivity products and metal oxide semiconductor based UWB chip and module system solutions; and power application controllers and programmable analog power ICs. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. Qorvo, Inc. was founded in 1957 and is headquartered in Greensboro, North Carolina.

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