Reviewing Shoals Technologies Group (NASDAQ:SHLS) and Onsemi (NASDAQ:ON)

Onsemi (NASDAQ:ON) and Shoals Technologies Group (NASDAQ:SHLS) are both computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Onsemi and Shoals Technologies Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onsemi	2	5	16	0	2.61
Shoals Technologies Group	3	6	14	0	2.48

Onsemi currently has a consensus target price of $85.87, indicating a potential upside of 34.36%. Shoals Technologies Group has a consensus target price of $10.64, indicating a potential upside of 79.47%. Given Shoals Technologies Group’s higher possible upside, analysts clearly believe Shoals Technologies Group is more favorable than Onsemi.

Insider & Institutional Ownership

97.7% of Onsemi shares are owned by institutional investors. 0.3% of Onsemi 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 hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Onsemi 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
Onsemi	$7.38 billion	3.69	$2.18 billion	$4.03	15.86
Shoals Technologies Group	$422.66 million	2.34	$39.97 million	$0.20	29.65

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

Risk and Volatility

Onsemi has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Onsemi	23.80%	22.38%	13.57%
Shoals Technologies Group	7.78%	9.83%	6.60%

Summary

Onsemi beats Shoals Technologies Group on 10 of the 14 factors compared between the two stocks.

About Onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions. The Advanced Solutions Group segment is involved in the designing and developing of analog, mixed-signal, advanced logic, ASSPs and ASICs, Wi-Fi and power solutions for a broad base of end-users in the automotive, consumer, computing, industrial, communications, medical and aerospace/defense markets. The Intelligent Sensing Group segment is focused on the designing and developing of CMOS and CCD image sensors, as well as proximity sensors, image signal processors, single photon detectors, inclu

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.