Tigo Energy (NASDAQ:TYGO – Get Free Report) and Shoals Technologies Group (NASDAQ:SHLS – Get Free Report) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.
Institutional & Insider Ownership
15.7% of Tigo Energy shares are owned by institutional investors. 26.3% of Tigo Energy shares are owned by insiders. Comparatively, 1.7% of Shoals Technologies Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Tigo Energy has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tigo Energy | $145.23 million | 0.43 | -$980,000.00 | ($0.85) | -1.20 |
| Shoals Technologies Group | $488.94 million | 1.35 | $39.97 million | $0.20 | 19.80 |
Shoals Technologies Group has higher revenue and earnings than Tigo Energy. Tigo Energy 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 Recommendations
This is a summary of recent recommendations and price targets for Tigo Energy and Shoals Technologies Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tigo Energy | 0 | 1 | 2 | 0 | 2.67 |
| Shoals Technologies Group | 3 | 6 | 13 | 0 | 2.45 |
Tigo Energy presently has a consensus target price of $3.00, suggesting a potential upside of 194.12%. Shoals Technologies Group has a consensus target price of $9.48, suggesting a potential upside of 139.27%. Given Tigo Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Tigo Energy is more favorable than Shoals Technologies Group.
Profitability
This table compares Tigo Energy and Shoals Technologies Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tigo Energy | -110.29% | -103.85% | -46.23% |
| Shoals Technologies Group | 7.78% | 9.83% | 6.60% |
Summary
Shoals Technologies Group beats Tigo Energy on 10 of the 14 factors compared between the two stocks.
About Tigo Energy
Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.
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.
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