Resonant (NASDAQ:RESN) and Solaredge Technologies (NASDAQ:SEDG) Critical Analysis

Solaredge Technologies (NASDAQ:SEDG) and Resonant (NASDAQ:RESN) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Solaredge Technologies and Resonant, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solaredge Technologies 1 2 7 0 2.60
Resonant 0 0 5 0 3.00

Solaredge Technologies currently has a consensus target price of $60.40, indicating a potential downside of 3.58%. Resonant has a consensus target price of $6.30, indicating a potential upside of 164.71%. Given Resonant’s stronger consensus rating and higher probable upside, analysts clearly believe Resonant is more favorable than Solaredge Technologies.

Profitability

This table compares Solaredge Technologies and Resonant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solaredge Technologies 11.23% 19.57% 11.88%
Resonant -5,236.92% -103.25% -90.65%

Earnings and Valuation

This table compares Solaredge Technologies and Resonant’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solaredge Technologies $937.24 million 3.18 $128.83 million $2.69 23.29
Resonant $520,000.00 128.57 -$24.82 million ($0.98) -2.43

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

Institutional & Insider Ownership

87.0% of Solaredge Technologies shares are held by institutional investors. Comparatively, 9.2% of Resonant shares are held by institutional investors. 7.9% of Solaredge Technologies shares are held by insiders. Comparatively, 26.6% of Resonant shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Solaredge Technologies has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Resonant has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500.

Summary

Solaredge Technologies beats Resonant on 9 of the 14 factors compared between the two stocks.

About Solaredge Technologies

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations worldwide. Its SolarEdge system consists of power optimizers, inverters, communication and smart energy management solutions, and a cloud based monitoring platform. The company's products are used in a range of solar market segments, such as residential, commercial, and small utility-scale solar installations. It also provides pre-sales support, ongoing trainings, and technical support and after installation services; and lithium-ion cells, batteries, and energy storage solutions for various industries, including energy storage systems, residential and commercial solar systems, uninterruptible power supplies, electric vehicles, aerospace, marine, and others. The company sells its products to the providers of solar PV systems; and solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was founded in 2006 and is headquartered in Herzliya, Israel.

About Resonant

Resonant Inc., a late-stage development company, designs and develops filter designs for radio frequency (RF) front-ends used in the mobile device industry in the United States. It uses Infinite Synthesized Networks technology, a software platform that is used to configure and connect resonators, the building blocks of RF filters. The company develops a series of single-band designs for frequency bands; and multiplexer filter designs for two or more bands to address the carrier aggregation, as well as filter designs to replace various filters and associated componentry for various bands. Resonant Inc. was founded in 2012 and is headquartered in Goleta, California.

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