Comparing WiSA Technologies (NASDAQ:WISA) & Shoals Technologies Group (NASDAQ:SHLS)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Shoals Technologies Group and WiSA Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	0	3	15	0	2.83
WiSA Technologies	0	1	0	0	2.00

Shoals Technologies Group presently has a consensus target price of $20.61, suggesting a potential upside of 134.22%. Given Shoals Technologies Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Shoals Technologies Group is more favorable than WiSA Technologies.

Volatility & Risk

Shoals Technologies Group has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, WiSA Technologies has a beta of -0.28, meaning that its share price is 128% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	8.18%	16.02%	10.18%
WiSA Technologies	-898.75%	-964.80%	-283.17%

Valuation and Earnings

This table compares Shoals Technologies Group and WiSA Technologies’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$488.94 million	3.07	$39.97 million	$0.25	35.20
WiSA Technologies	$2.08 million	3.30	-$18.72 million	N/A	N/A

Shoals Technologies Group has higher revenue and earnings than WiSA Technologies.

Institutional and Insider Ownership

0.7% of WiSA Technologies shares are held by institutional investors. 0.4% of Shoals Technologies Group shares are held by company insiders. Comparatively, 0.1% of WiSA Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Shoals Technologies Group beats WiSA Technologies on 10 of the 12 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 WiSA Technologies

WiSA Technologies, Inc. develops, manufactures, and sells audio wireless technology for smart devices and next-generation home entertainment systems in the United States and Europe. The company offers wireless modules. It serves primarily to consumer electronics companies. The company was formerly known as Summit Wireless Technologies, Inc. and changed its name to WiSA Technologies Inc. in March 2022. WiSA Technologies, Inc. was incorporated in 2010 and is headquartered in Beaverton, Oregon.