Vivopower International (NASDAQ:VVPR) versus SolarEdge Technologies (NASDAQ:SEDG) Critical Analysis

Vivopower International (NASDAQ:VVPR) and SolarEdge Technologies (NASDAQ:SEDG) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Volatility and Risk

Vivopower International has a beta of -1.65, suggesting that its share price is 265% less volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Institutional & Insider Ownership

15.8% of Vivopower International shares are held by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are held by institutional investors. 9.1% of Vivopower International shares are held by insiders. Comparatively, 0.7% of SolarEdge Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Vivopower International and SolarEdge Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vivopower International	N/A	N/A	N/A
SolarEdge Technologies	-34.23%	-45.54%	-9.73%

Analyst Ratings

This is a summary of current ratings and target prices for Vivopower International and SolarEdge Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vivopower International	1	0	0	0	1.00
SolarEdge Technologies	7	17	1	0	1.76

SolarEdge Technologies has a consensus price target of $29.90, indicating a potential downside of 26.29%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe SolarEdge Technologies is more favorable than Vivopower International.

Valuation & Earnings

This table compares Vivopower International and SolarEdge Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vivopower International	$61,000.00	638.67	-$12.79 million	N/A	N/A
SolarEdge Technologies	$1.18 billion	2.08	-$405.45 million	($6.88)	-5.90

Vivopower International has higher earnings, but lower revenue than SolarEdge Technologies.

About Vivopower International

VivoPower International PLC, together with its subsidiaries, operates as a sustainable energy solutions company in Australia, Canada, the Netherlands, the United Kingdom, the United States, the Philippines, and the United Arab Emirates. It operates through Critical Power Services, Electric Vehicles, Sustainable Energy Solutions, and Solar Development segments. The Critical Power Services segment offers energy infrastructure generation and distribution solutions, including the design, supply, installation, and maintenance of power and control systems to a range of government, commercial, and industrial customers. The Electric Vehicles segment designs and builds electric battery conversion kits to replace internal combustion engines for customers in the mining, infrastructure, utilities, and government services sectors. The Sustainable Energy Solutions segment engages in the design, evaluation, sale, and implementation of renewable energy infrastructure. The Solar Development segment comprises solar projects. The company was founded in 2014 and is headquartered in London, the United Kingdom.

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.