Financial Contrast: CSLM Acquisition (NASDAQ:SPWR) and Tigo Energy (NASDAQ:TYGO)

Tigo Energy (NASDAQ:TYGO) and CSLM Acquisition (NASDAQ:SPWR) are both small-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

This table compares Tigo Energy and CSLM Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tigo Energy	-44.50%	-623.75%	-48.67%
CSLM Acquisition	5.11%	-16.64%	10.18%

Valuation and Earnings

This table compares Tigo Energy and CSLM Acquisition”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tigo Energy	$54.01 million	3.95	-$62.75 million	($0.65)	-4.66
CSLM Acquisition	$108.74 million	1.70	-$56.45 million	($0.47)	-3.66

CSLM Acquisition has higher revenue and earnings than Tigo Energy. Tigo Energy is trading at a lower price-to-earnings ratio than CSLM Acquisition, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Tigo Energy has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, CSLM Acquisition has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Institutional and Insider Ownership

15.7% of Tigo Energy shares are held by institutional investors. Comparatively, 47.4% of CSLM Acquisition shares are held by institutional investors. 29.6% of Tigo Energy shares are held by insiders. Comparatively, 32.3% of CSLM Acquisition shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Tigo Energy and CSLM Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tigo Energy	1	0	2	0	2.33
CSLM Acquisition	0	2	1	0	2.33

Tigo Energy presently has a consensus target price of $4.50, suggesting a potential upside of 48.51%. CSLM Acquisition has a consensus target price of $5.40, suggesting a potential upside of 213.95%. Given CSLM Acquisition’s higher possible upside, analysts plainly believe CSLM Acquisition is more favorable than Tigo Energy.

Summary

CSLM Acquisition beats Tigo Energy on 10 of the 13 factors compared between the two stocks.

About Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.

About CSLM Acquisition

Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.