Head-To-Head Review: NuScale Power (NYSE:SMR) & SolarEdge Technologies (NASDAQ:SEDG)

SolarEdge Technologies (NASDAQ:SEDG) and NuScale Power (NYSE:SMR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Earnings and Valuation

This table compares SolarEdge Technologies and NuScale Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarEdge Technologies	$1.18 billion	1.61	-$405.45 million	($4.50)	-6.90
NuScale Power	$31.48 million	77.47	-$355.79 million	($2.92)	-1.94

NuScale Power has lower revenue, but higher earnings than SolarEdge Technologies. SolarEdge Technologies is trading at a lower price-to-earnings ratio than NuScale Power, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares SolarEdge Technologies and NuScale Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarEdge Technologies	-20.29%	-29.17%	-5.62%
NuScale Power	-3,888.70%	-35.59%	-30.27%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for SolarEdge Technologies and NuScale Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	5	11	2	0	1.83
NuScale Power	4	8	4	1	2.12

SolarEdge Technologies currently has a consensus price target of $38.33, indicating a potential upside of 23.42%. NuScale Power has a consensus price target of $12.96, indicating a potential upside of 128.40%. Given NuScale Power’s stronger consensus rating and higher probable upside, analysts plainly believe NuScale Power is more favorable than SolarEdge Technologies.

Volatility & Risk

SolarEdge Technologies has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, NuScale Power has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Insider and Institutional Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. Comparatively, 78.4% of NuScale Power shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by insiders. Comparatively, 1.3% of NuScale Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

NuScale Power beats SolarEdge Technologies on 10 of the 15 factors compared between the two stocks.

About SolarEdge Technologies

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.

About NuScale Power

NuScale Power Corporation engages in the development and sale of modular light water reactor nuclear power plants to supply energy for electrical generation, district heating, desalination, hydrogen production, and other process heat applications. It offers NuScale Power Module (NPM), a water reactor that can generate 77 megawatts of electricity (MWe); and VOYGR power plant designs for three facility sizes that are capable of housing from one to four and six or twelve NPMs. The company was founded in 2007 and is headquartered in Portland, Oregon. NuScale Power Corporation operates as a subsidiary of Fluor Enterprises, Inc.