Shoals Technologies Group (NASDAQ:SHLS) & Eos Energy Enterprises (NASDAQ:EOSE) Financial Analysis

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

Volatility and Risk

Shoals Technologies Group has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Eos Energy Enterprises has a beta of 2.77, indicating that its share price is 177% more volatile than the S&P 500.

Profitability

This table compares Shoals Technologies Group and Eos Energy Enterprises’ 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%
Eos Energy Enterprises	-246.76%	N/A	-72.43%

Valuation & Earnings

This table compares Shoals Technologies Group and Eos Energy Enterprises”s gross 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	2.52	$33.57 million	$0.19	37.53
Eos Energy Enterprises	$114.20 million	12.37	-$969.65 million	($6.83)	-0.57

Shoals Technologies Group has higher revenue and earnings than Eos Energy Enterprises. Eos Energy Enterprises 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

54.9% of Eos Energy Enterprises shares are held by institutional investors. 0.8% of Shoals Technologies Group shares are held by insiders. Comparatively, 1.7% of Eos Energy Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Shoals Technologies Group and Eos Energy Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	0	6	11	0	2.65
Eos Energy Enterprises	1	6	2	1	2.30

Shoals Technologies Group presently has a consensus price target of $10.71, indicating a potential upside of 50.27%. Eos Energy Enterprises has a consensus price target of $8.25, indicating a potential upside of 112.63%. Given Eos Energy Enterprises’ higher possible upside, analysts plainly believe Eos Energy Enterprises is more favorable than Shoals Technologies Group.

Summary

Shoals Technologies Group beats Eos Energy Enterprises on 9 of the 15 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 Eos Energy Enterprises

Eos Energy Enterprises, Inc. designs, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial (C&I) applications in the United States. The company offers Znyth technology battery energy storage system (BESS), which provides the operating flexibility to manage increased grid complexity and price volatility. Its flagship product is Gen 2.3 battery module. In addition, the company offers Z3 battery module that provides utilities, independent power producers, renewables developers, and C&I customers with an alternative to lithium-ion and lead-acid monopolar batteries for critical 3- to 12-hour discharge duration applications; battery management system, which provides a remote asset monitoring capability and service to track the performance and health of BESS and identify future system performance issues through predictive analytics; and project management and commissioning services, as well as long-term maintenance plans. Eos Energy Enterprises, Inc. is headquartered in Edison, New Jersey.