Head-To-Head Analysis: Emeren Group (NYSE:SOL) and Silicon Laboratories (NASDAQ:SLAB)

Silicon Laboratories (NASDAQ:SLAB) and Emeren Group (NYSE:SOL) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Silicon Laboratories and Emeren Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Laboratories	0	5	5	0	2.50
Emeren Group	2	0	2	0	2.00

Silicon Laboratories presently has a consensus target price of $121.50, suggesting a potential upside of 20.93%. Emeren Group has a consensus target price of $3.83, suggesting a potential upside of 100.70%. Given Emeren Group’s higher probable upside, analysts clearly believe Emeren Group is more favorable than Silicon Laboratories.

Institutional and Insider Ownership

44.1% of Emeren Group shares are owned by institutional investors. 1.7% of Silicon Laboratories shares are owned by insiders. Comparatively, 37.3% of Emeren Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Silicon Laboratories and Emeren Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silicon Laboratories	-46.93%	-12.60%	-10.85%
Emeren Group	-20.91%	-3.15%	-2.41%

Valuation and Earnings

This table compares Silicon Laboratories and Emeren Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicon Laboratories	$782.26 million	4.17	-$34.52 million	($7.40)	-13.58
Emeren Group	$103.58 million	0.95	-$3.19 million	($0.13)	-14.69

Emeren Group has lower revenue, but higher earnings than Silicon Laboratories. Emeren Group is trading at a lower price-to-earnings ratio than Silicon Laboratories, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Silicon Laboratories has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Emeren Group has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Summary

Emeren Group beats Silicon Laboratories on 9 of the 14 factors compared between the two stocks.

About Silicon Laboratories

Silicon Laboratories Inc., a fabless semiconductor company, provides various analog-intensive mixed-signal solutions in the United States, China, Taiwan, and internationally. The company's products include wireless microcontrollers and sensor products. Its products are used in various electronic products in a range of applications for the industrial Internet of Things (IoT), including industrial automation and control, smart buildings, access control, HVAC control, and industrial wearables and power tools; smart cities applications, such as smart metering, smart street lighting, renewable energy, electric vehicle supply equipment, and smart agriculture; commercial IoT applications, including smart lighting, asset tracking, electronic shelf labels, theft protection, and enterprise access points; smart home applications, comprising home automation/security systems, smart speakers, smart lighting, HVAC control, smart cameras, smart appliances, smart home sensing, smart locks, and window/blind controls; and connected health applications, including diabetes management, consumer health and fitness, elderly care, patient monitoring, and activity tracking; as well as in commercial building automation, consumer electronics, and medical instrumentation. The company sells its products through its direct sales force, as well as through a network of independent sales representatives and distributors. Silicon Laboratories Inc. was founded in 1996 and is headquartered in Austin, Texas.

About Emeren Group

Emeren Group Ltd, together with its subsidiaries, develops, builds, and sells solar power projects. It owns and operates 3-gigawatt pipeline of projects and independent power producer assets, as well as a 10-gigawatt pipeline of storage pipeline. The company develops community solar gardens; and sells project rights. In addition, it engages in engineering design; procurement of solar modules; balance-of-system components and other components; and construction contracting and management services. Further, the company generates and sells electricity. It operates in China, the United States, the United Kingdom, Germany, France, Poland, Italy, and Hungary. The company was formerly known as ReneSola Ltd and changed its name to Emeren Group Ltd in January 2023. Emeren Group Ltd was founded in 2005 and is headquartered in Norwalk, Connecticut.