Contrasting Shoals Technologies Group (NASDAQ:SHLS) and NXP Semiconductors (NASDAQ:NXPI)

Shoals Technologies Group (NASDAQ:SHLS) and NXP Semiconductors (NASDAQ:NXPI) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, earnings, institutional ownership and profitability.

Earnings and Valuation

This table compares Shoals Technologies Group and NXP Semiconductors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$488.94 million	1.35	$39.97 million	$0.20	19.80
NXP Semiconductors	$12.61 billion	4.52	$2.80 billion	$9.73	23.04

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

Risk and Volatility

Shoals Technologies Group has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500. Comparatively, NXP Semiconductors has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Shoals Technologies Group and NXP Semiconductors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	3	6	13	0	2.45
NXP Semiconductors	0	4	15	0	2.79

Shoals Technologies Group presently has a consensus price target of $9.48, indicating a potential upside of 139.27%. NXP Semiconductors has a consensus price target of $264.45, indicating a potential upside of 17.98%. Given Shoals Technologies Group’s higher possible upside, analysts clearly believe Shoals Technologies Group is more favorable than NXP Semiconductors.

Insider and Institutional Ownership

90.5% of NXP Semiconductors shares are owned by institutional investors. 1.7% of Shoals Technologies Group shares are owned by company insiders. Comparatively, 0.1% of NXP Semiconductors shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	7.78%	9.83%	6.60%
NXP Semiconductors	19.90%	31.45%	12.56%

Summary

NXP Semiconductors beats Shoals Technologies Group on 11 of the 14 factors compared between the two stocks.

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.

About NXP Semiconductors

NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.