SolarEdge Technologies (NASDAQ:SEDG) and Varta (OTCMKTS:VARGF) Financial Survey

Varta (OTCMKTS:VARGF) and SolarEdge Technologies (NASDAQ:SEDG) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Insider and Institutional Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Varta	N/A	N/A	N/A
SolarEdge Technologies	-20.29%	-29.17%	-5.62%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Varta and SolarEdge Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Varta	0	0	0	0	0.00
SolarEdge Technologies	5	10	2	0	1.82

SolarEdge Technologies has a consensus target price of $38.36, indicating a potential upside of 19.56%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe SolarEdge Technologies is more favorable than Varta.

Valuation & Earnings

This table compares Varta and SolarEdge Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Varta	N/A	N/A	N/A	N/A	N/A
SolarEdge Technologies	$1.18 billion	1.67	-$405.45 million	($4.50)	-7.13

Varta has higher earnings, but lower revenue than SolarEdge Technologies.

Summary

SolarEdge Technologies beats Varta on 6 of the 9 factors compared between the two stocks.

About Varta

Varta AG, through its subsidiaries, engages in the research, development, production, and sale of micro and household batteries, large-format batteries, battery solutions, and energy storage systems in Europe, Asia, North America, and internationally. It operates in five segments: Micro Batteries, Lithium-Ion CoinPower, Consumer Batteries, Energy Storage Systems, and Other. The Micro Batteries segments offers zinc-air batteries under the power one and ecopack brand names for use in microbatteries and hearing aid devices. The Lithium-Ion CoinPower segment provides lithium-ion battery solutions for wireless headphones for medical devices to measure hypertension, blood sugar, and other bodily functions, as well as the power supply for COVID19 antibody tests. The Consumer Batteries segment offers household batteries, rechargeable batteries, power banks, chargers, and lights. The Energy Storage Systems segment provides energy storage solutions for the home and mass storage markets. The Other segment offers lithium-ion large cells product for rechargeable battery solutions for industrial and original equipment manufacturers for applications, such as servers, applications in alarm systems, or smart meters; and produces rechargeable, standardized, and customized battery packs for industrial and wireless applications. This segment is also involved in the development, system integration, and assembly of lithium-ion battery packs for portable industrial, communication devices, electric power tool, home, garden, and medical applications. The company was founded in 1887 and is headquartered in Ellwangen, Germany. Varta AG is a subsidiary of Montana Tech Components AG.

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.