Solaredge Technologies (NASDAQ:SEDG) vs. Alpha and Omega Semiconductor (NASDAQ:AOSL) Critical Analysis

Solaredge Technologies (NASDAQ:SEDG) and Alpha and Omega Semiconductor (NASDAQ:AOSL) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk and Volatility

Solaredge Technologies has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Alpha and Omega Semiconductor has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Solaredge Technologies 10.09% 17.81% 10.51%
Alpha and Omega Semiconductor 0.10% 3.50% 2.11%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solaredge Technologies $937.24 million 4.10 $128.83 million $2.69 29.75
Alpha and Omega Semiconductor $450.92 million 0.66 $1.86 million $0.70 17.27

Solaredge Technologies has higher revenue and earnings than Alpha and Omega Semiconductor. Alpha and Omega Semiconductor 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

81.4% of Solaredge Technologies shares are owned by institutional investors. Comparatively, 62.3% of Alpha and Omega Semiconductor shares are owned by institutional investors. 7.9% of Solaredge Technologies shares are owned by company insiders. Comparatively, 21.2% of Alpha and Omega Semiconductor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Solaredge Technologies and Alpha and Omega Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solaredge Technologies 0 3 8 0 2.73
Alpha and Omega Semiconductor 0 0 2 0 3.00

Solaredge Technologies presently has a consensus target price of $85.09, suggesting a potential upside of 6.34%. Alpha and Omega Semiconductor has a consensus target price of $19.50, suggesting a potential upside of 61.29%. Given Alpha and Omega Semiconductor’s stronger consensus rating and higher possible upside, analysts clearly believe Alpha and Omega Semiconductor is more favorable than Solaredge Technologies.

Summary

Solaredge Technologies beats Alpha and Omega Semiconductor on 10 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.

Alpha and Omega Semiconductor Company Profile

Alpha and Omega Semiconductor Limited designs, develops, and supplies power semiconductor products for computing, consumer electronics, communication, and industrial applications worldwide. The company offers power discrete products, such as metal-oxide-semiconductor field-effect transistors (MOSFET), SRFETs, XSFET, electrostatic discharge, protected MOSFETs, high and mid-voltage MOSFETs, and insulated gate bipolar transistors. Its power discrete products are used in smart phone chargers, battery packs, notebooks, desktop and servers, data centers, base stations, graphics cards, game boxes, TVs, AC adapters, power supplies, motor control, power tools, e-vehicles, white goods and industrial motor drives, UPS systems, solar inverters, and industrial welding. The company also provides power ICs that deliver power, as well as control and regulate the power management variables, such as the flow of current and level of voltage. Its power ICs are used in flat panel displays, TVs, notebooks, ultrabooks, servers, DVD/Blu-Ray players, set-top boxes, and networking equipment. In addition, the company offers a family of EZBuck regulators for use in TVs, set-top boxes, data storage systems, servers, and other embedded systems; and the AONX38168 for server and telecommunication markets. Alpha and Omega Semiconductor Limited was incorporated in 2000 and is headquartered in Sunnyvale, California.

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