Head-To-Head Analysis: Navitas Semiconductor (NASDAQ:NVTS) versus SolarEdge Technologies (NASDAQ:SEDG)

Navitas Semiconductor (NASDAQ:NVTS) and SolarEdge Technologies (NASDAQ:SEDG) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional and Insider Ownership

46.1% of Navitas Semiconductor shares are owned by institutional investors. Comparatively, 95.1% of SolarEdge Technologies shares are owned by institutional investors. 36.8% of Navitas Semiconductor shares are owned by company insiders. Comparatively, 1.2% of SolarEdge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Navitas Semiconductor has a beta of 2.54, meaning that its stock price is 154% more volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Navitas Semiconductor	-183.04%	-18.81%	-15.21%
SolarEdge Technologies	1.15%	5.00%	2.65%

Analyst Ratings

This is a summary of recent ratings and target prices for Navitas Semiconductor and SolarEdge Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Navitas Semiconductor	0	3	3	0	2.50
SolarEdge Technologies	3	20	6	0	2.10

Navitas Semiconductor currently has a consensus target price of $9.82, indicating a potential upside of 105.80%. SolarEdge Technologies has a consensus target price of $109.69, indicating a potential upside of 54.54%. Given Navitas Semiconductor’s stronger consensus rating and higher possible upside, research analysts plainly believe Navitas Semiconductor is more favorable than SolarEdge Technologies.

Earnings & Valuation

This table compares Navitas Semiconductor and SolarEdge Technologies’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Navitas Semiconductor	$79.46 million	10.76	-$145.43 million	($0.88)	-5.42
SolarEdge Technologies	$2.98 billion	1.36	$34.33 million	$0.45	157.73

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

Summary

SolarEdge Technologies beats Navitas Semiconductor on 8 of the 13 factors compared between the two stocks.

About Navitas Semiconductor

Navitas Semiconductor Corporation designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging. The company's products are used in mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation applications. It operates in the United States, Europe, China, rest of Asia, and internationally. The company was founded in 2013 and is based in Torrance, California.

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.