Reviewing Shoals Technologies Group (NASDAQ:SHLS) & POET Technologies (NASDAQ:POET)

Shoals Technologies Group (NASDAQ:SHLS) and POET Technologies (NASDAQ:POET) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Institutional and Insider Ownership

2.0% of POET Technologies shares are held by institutional investors. 1.7% of Shoals Technologies Group shares are held by company insiders. Comparatively, 0.5% of POET Technologies shares are held by company 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.

Risk and Volatility

Shoals Technologies Group has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, POET Technologies has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Profitability

This table compares Shoals Technologies Group and POET Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	7.78%	9.83%	6.60%
POET Technologies	N/A	-194.16%	-132.32%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Shoals Technologies Group and POET Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	3	7	13	0	2.43
POET Technologies	0	0	2	1	3.33

Shoals Technologies Group currently has a consensus price target of $9.48, indicating a potential upside of 109.62%. POET Technologies has a consensus price target of $6.25, indicating a potential upside of 42.05%. Given Shoals Technologies Group’s higher possible upside, equities analysts plainly believe Shoals Technologies Group is more favorable than POET Technologies.

Valuation & Earnings

This table compares Shoals Technologies Group and POET Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$422.66 million	1.78	$39.97 million	$0.20	22.60
POET Technologies	$470,000.00	730.59	-$20.27 million	($0.59)	-7.46

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

Summary

Shoals Technologies Group beats POET Technologies on 11 of the 15 factors compared between the two stocks.

About Shoals Technologies Group

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services. It provides EBOS components, including combiners; plug-n-play branch connectors and inline fuses; AC disconnects; recombiners; wireless monitoring; junction boxes; wire management; EV power cabinets; and battery energy storage systems cabinets, as well as cable assemblies, transition enclosures, and splice boxes. In addition, the company offers eMobility solutions, such as a power center, which combines equipment needed to protect the charging equipment and transform voltage levels from the electric utility to those needed on the respective site; quick connect solutions for chargers to connect to the Shoals system; big lead assembly (BLA) technology in the EV space to connect multiple chargers to a single power center; and a raceway system that protects the above ground EV BLAs in walk over and drive over applications. Further, it provides Snapshot IV, a solar operations and maintenance solution that monitors the specific voltage and current of individual solar panels and compares the results against the manufacturer's projected performance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

About POET Technologies

POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, Singapore, and China. It offers integration solutions based on the POET Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multi-chip module using advanced wafer-level semiconductor manufacturing techniques. It also develops photonic integrated components. The company serves the data center, telecommunications, Internet of things and industrial sensing, automotive LIDAR, optical coherence tomography for medical devices, and virtual reality systems markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. was incorporated in 1972 and is headquartered in Toronto, Canada.