Comparing Energy Vault (NYSE:NRGV) & Shoals Technologies Group (NASDAQ:SHLS)

Shoals Technologies Group (NASDAQ:SHLS) and Energy Vault (NYSE:NRGV) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings for Shoals Technologies Group and Energy Vault, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	0	6	11	0	2.65
Energy Vault	2	1	4	0	2.29

Shoals Technologies Group currently has a consensus price target of $10.71, suggesting a potential upside of 27.37%. Energy Vault has a consensus price target of $5.41, suggesting a potential upside of 44.85%. Given Energy Vault’s higher probable upside, analysts plainly believe Energy Vault is more favorable than Shoals Technologies Group.

Risk and Volatility

Shoals Technologies Group has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500. Comparatively, Energy Vault has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Earnings and Valuation

This table compares Shoals Technologies Group and Energy Vault”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$475.33 million	2.96	$33.57 million	$0.19	44.27
Energy Vault	$203.67 million	3.27	-$103.61 million	($0.71)	-5.26

Shoals Technologies Group has higher revenue and earnings than Energy Vault. Energy Vault 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.

Insider & Institutional Ownership

40.0% of Energy Vault shares are held by institutional investors. 0.8% of Shoals Technologies Group shares are held by company insiders. Comparatively, 17.2% of Energy Vault shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	5.41%	10.07%	6.38%
Energy Vault	-48.58%	-184.45%	-36.87%

Summary

Shoals Technologies Group beats Energy Vault on 10 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 Energy Vault

Energy Vault Holdings, Inc. develops and sells energy storage solutions. The company offers B-Vault, an electrochemical battery energy storage systems for shorter-duration energy storage needs; G-Vault, a proprietary gravity energy storage solution, including EVx solution; and H-Vault, a hybrid energy storage systems including systems that integrate green hydrogen. Its software solutions includes Vault-OS, an energy management system the management of one or more diverse storage mediums; Vault-Bidder that utilizes machine learning algorithms to match node-specific data with real-time weather and asset performance information; and Vault-Manager which designs to safeguard asset management and to help blend developing technologies seamlessly into existing solutions. Energy Vault Holdings, Inc. is based in Westlake Village, California.