Head to Head Review: Shoals Technologies Group (NASDAQ:SHLS) vs. Everspin Technologies (NASDAQ:MRAM)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Everspin Technologies	2.85%	2.74%	2.27%
Shoals Technologies Group	7.78%	9.83%	6.60%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Everspin Technologies	$50.40 million	2.25	$9.05 million	$0.02	256.50
Shoals Technologies Group	$399.21 million	1.43	$39.97 million	$0.15	22.80

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

Insider & Institutional Ownership

44.7% of Everspin Technologies shares are owned by institutional investors. 6.1% of Everspin Technologies shares are owned by company insiders. Comparatively, 0.4% of Shoals Technologies Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Everspin Technologies and Shoals Technologies Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Everspin Technologies	0	0	2	0	3.00
Shoals Technologies Group	3	7	13	0	2.43

Everspin Technologies currently has a consensus price target of $9.00, indicating a potential upside of 75.44%. Shoals Technologies Group has a consensus price target of $8.87, indicating a potential upside of 159.36%. Given Shoals Technologies Group’s higher possible upside, analysts clearly believe Shoals Technologies Group is more favorable than Everspin Technologies.

Risk and Volatility

Everspin Technologies has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Summary

Shoals Technologies Group beats Everspin Technologies on 9 of the 14 factors compared between the two stocks.

About Everspin Technologies

Everspin Technologies, Inc. engages in the manufacture and sale of magnetoresistive random access memory (MRAM) products in the United States, Japan, Hong Kong, Germany, Singapore, China, Canada, and internationally. It offers Toggle MRAM, spin-transfer torque MRAM, and tunnel magneto resistance sensor products, as well as foundry services for MRAM products. The company provides its products for applications, including industrial, medical, automotive/transportation, aerospace, and data center markets. It serves original equipment manufacturers, contract manufacturers, and original design manufacturers through a direct sales channel, and a network of representatives and distributors. Everspin Technologies, Inc. was incorporated in 2008 and is headquartered in Chandler, Arizona.

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.