SolarEdge Technologies (NASDAQ:SEDG) & Beam Global (NASDAQ:BEEM) Critical Comparison

SolarEdge Technologies (NASDAQ:SEDG) and Beam Global (NASDAQ:BEEM) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Valuation and Earnings

This table compares SolarEdge Technologies and Beam Global’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarEdge Technologies	$1.51 billion	1.09	$34.33 million	($4.65)	-6.19
Beam Global	$65.89 million	1.22	-$16.06 million	($1.30)	-4.25

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

Insider and Institutional Ownership

95.1% of SolarEdge Technologies shares are held by institutional investors. Comparatively, 26.6% of Beam Global shares are held by institutional investors. 0.7% of SolarEdge Technologies shares are held by insiders. Comparatively, 3.0% of Beam Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SolarEdge Technologies	-33.86%	-18.00%	-9.59%
Beam Global	-22.16%	-30.53%	-21.59%

Volatility & Risk

SolarEdge Technologies has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Beam Global has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for SolarEdge Technologies and Beam Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	3	24	4	0	2.03
Beam Global	0	1	3	0	2.75

SolarEdge Technologies presently has a consensus target price of $52.92, suggesting a potential upside of 83.94%. Beam Global has a consensus target price of $16.33, suggesting a potential upside of 195.36%. Given Beam Global’s stronger consensus rating and higher probable upside, analysts plainly believe Beam Global is more favorable than SolarEdge Technologies.

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 Beam Global

Beam Global, a clean-technology innovation company, engages in the design, development, engineering, manufacture, and sale of renewably energized infrastructure products and battery solutions. Its product portfolio includes EV ARC (electric vehicle autonomous renewable charger), an infrastructure product that uses integrated solar power and battery storage to provide a mounting asset and a source of power for factory installed electric vehicle charging stations; Solar Tree DCFC, an off-grid, renewably energized, and single-column mounted smart generation and energy storage system to provide a 150kW DC fast charge to one or more electric vehicles, such as electric buses, heavy-duty vehicles, agricultural equipment, public transportation, and electric vehicles used in the construction industry; and EV ARC DCFC, a DC fast charging system for charging EVs. The company is also involved in the development of EV-Standard, a lamp standard, EV charging, and emergency power product that uses an existing streetlamp's foundation and a combination of solar, wind, grid connection, and onboard energy storage to provide curbside charging; and UAV ARC, an off-grid and renewably energized product and network used to charge aerial drone (UAV) fleets. It offers its solutions for electric vehicle (EV) charging infrastructure, energy storage, energy security, disaster preparedness, street lighting, telecommunications, energy infrastructure, and outdoor media and branding industries. The company was formerly known as Envision Solar International, Inc. and changed its name to Beam Global in September 2020. Beam Global was incorporated in 2006 and is headquartered in San Diego, California.