SolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and Atkore (NYSE:ATKR – Get Free Report) are both mid-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Profitability
This table compares SolarEdge Technologies and Atkore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarEdge Technologies | -28.56% | -38.66% | -7.72% |
| Atkore | -4.19% | 9.22% | 4.49% |
Volatility and Risk
SolarEdge Technologies has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Atkore has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarEdge Technologies | 6 | 13 | 1 | 0 | 1.75 |
| Atkore | 1 | 3 | 1 | 1 | 2.33 |
SolarEdge Technologies currently has a consensus target price of $38.06, indicating a potential downside of 13.77%. Atkore has a consensus target price of $138.33, indicating a potential upside of 47.96%. Given Atkore’s stronger consensus rating and higher probable upside, analysts plainly believe Atkore is more favorable than SolarEdge Technologies.
Earnings and Valuation
This table compares SolarEdge Technologies and Atkore”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarEdge Technologies | $1.18 billion | 2.27 | -$405.45 million | ($6.13) | -7.20 |
| Atkore | $2.85 billion | 1.11 | -$15.18 million | ($3.58) | -26.12 |
Atkore has higher revenue and earnings than SolarEdge Technologies. Atkore is trading at a lower price-to-earnings ratio than SolarEdge Technologies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
95.1% of SolarEdge Technologies shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by insiders. Comparatively, 2.1% of Atkore shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Atkore beats SolarEdge Technologies on 11 of the 14 factors compared between the two stocks.
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.
About Atkore
Atkore Inc. engages in the manufacture and sale of electrical, mechanical, safety, and infrastructure products and solutions in the United States and internationally. The company offers conduits, cables, and installation accessories. It also designs and manufactures protection and reliability solutions for critical infrastructure, such as metal framing, mechanical pipe, perimeter security, and cable management. The company offers its products under the Allied Tube & Conduit, AFC Cable Systems, Kaf-Tech, Heritage Plastics, Unistrut, Power-Strut, Cope, US Tray, FRE Composites, United Poly Systems, Calbond, and Calpipe. It serves various end markets, including new construction; maintenance, repair, and remodel; infrastructure; diversified industrials; alternative power generation; healthcare; data centers; and governments through electrical, industrial, and mechanical contractors, as well as original equipment manufacturers. The company was formerly known as Atkore International Group Inc. and changed its name to Atkore Inc. in February 2021. Atkore Inc. was founded in 1959 and is headquartered in Harvey, Illinois.
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