Comparing Beam Global (NASDAQ:BEEM) and FTC Solar (NASDAQ:FTCI)

FTC Solar (NASDAQ:FTCI) and Beam Global (NASDAQ:BEEM) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for FTC Solar and Beam Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTC Solar	1	1	4	0	2.50
Beam Global	1	2	0	1	2.25

FTC Solar currently has a consensus price target of $8.90, suggesting a potential upside of 570.69%. Beam Global has a consensus price target of $1.50, suggesting a potential upside of 119.62%. Given FTC Solar’s stronger consensus rating and higher probable upside, analysts plainly believe FTC Solar is more favorable than Beam Global.

Earnings & Valuation

This table compares FTC Solar and Beam Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTC Solar	$109.10 million	0.22	-$79.58 million	($5.18)	-0.26
Beam Global	$26.53 million	0.62	-$27.00 million	($0.82)	-0.83

Beam Global has lower revenue, but higher earnings than FTC Solar. Beam Global is trading at a lower price-to-earnings ratio than FTC Solar, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FTC Solar and Beam Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTC Solar	-19.76%	N/A	-40.33%
Beam Global	-64.60%	-73.59%	-41.43%

Risk and Volatility

FTC Solar has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Beam Global has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

45.4% of FTC Solar shares are owned by institutional investors. Comparatively, 26.6% of Beam Global shares are owned by institutional investors. 19.2% of FTC Solar shares are owned by insiders. Comparatively, 5.6% of Beam Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

FTC Solar beats Beam Global on 11 of the 15 factors compared between the two stocks.

About FTC Solar

FTC Solar, Inc. (NASDAQ: FTCI) provides solar tracker systems, software, and engineering services for utility-scale photovoltaic projects. Its technology is designed to help solar panels follow the sun throughout the day, increasing energy production and supporting more efficient project development and operation. The company’s offerings include single-axis tracker systems, proprietary tracker-control and optimization software, and related engineering, technical, and installation support. FTC Solar’s software tools are intended to help project developers and operators optimize panel positioning, account for site conditions, and manage the performance of large solar installations.

About Beam Global

Beam Global, formerly known as Envision Solar International, develops and manufactures renewable energy infrastructure for electric vehicle charging and other distributed-energy applications. The company’s systems are designed to generate, store and deliver electricity using solar power, reducing reliance on traditional grid connections. Its primary product is the EV ARC, a portable, solar-powered electric vehicle charging system that can be deployed without trenching or extensive construction. Beam Global also offers related products and configurations for fleet charging, energy storage, backup power and other off-grid or resilient-energy needs, including charging and power systems intended for commercial, municipal and government users.