SEDG
SolarEdge Technologies, Inc.
Solar
Market Cap$2.35B
5Y Perf.-86.6%
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Stock Comparison
SEDG vs SHLS
Revenue, margins, valuation, and 5-year total return — side by side.
SHLS
Shoals Technologies Group, Inc.
Solar
Market Cap$1.32B
5Y Perf.-76.9%
SEDG vs SHLS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | SEDG | SHLS |
|---|---|---|
| Industry | Solar | Solar |
| Market Cap | $2.35B | $1.32B |
| Revenue (TTM) | $1.28B | $536M |
| Net Income (TTM) | $-364M | $34M |
| Gross Margin | 18.2% | 33.5% |
| Operating Margin | -18.6% | 11.2% |
| Forward P/E | 610.9x | 19.4x |
| Total Debt | $423M | $175M |
| Cash & Equiv. | $540M | $7M |
SEDG vs SHLS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
SEDG
SHLS
| Stock | Jan 21 | May 26 | Return |
|---|---|---|---|
| SolarEdge Technolog… (SEDG) | 100 | 13.4 | -86.6% |
| Shoals Technologies… (SHLS) | 100 | 23.1 | -76.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SEDG vs SHLS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: SEDG and SHLS are tied at the top with 3 categories each — the right choice depends on your priorities. Shoals Technologies Group, Inc. is the stronger pick specifically for valuation and capital efficiency and profitability and margin quality. As sector peers, any of these can serve as alternatives in the same allocation.
SEDG
SolarEdge Technologies, Inc.
The Income Pick
SEDG has the current edge in this matchup, primarily because of its strength in income & stability and growth exposure.
- beta 2.03
- Rev growth 31.4%, EPS growth 78.2%, 3Y rev CAGR -27.5%
- 70.9% 10Y total return vs SHLS's -74.7%
Best for: income & stability and growth exposure
SHLS
Shoals Technologies Group, Inc.
The Value Play
SHLS is the clearest fit if your priority is value and quality.
- Lower P/E (19.4x vs 610.9x)
- 6.3% margin vs SEDG's -28.6%
- 3.7% ROA vs SEDG's -15.9%, ROIC 5.9% vs -29.5%
Best for: value and quality
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | SEDG | 31.4% revenue growth vs SHLS's 19.1% |
| Value | SHLS | Lower P/E (19.4x vs 610.9x) |
| Quality / Margins | SHLS | 6.3% margin vs SEDG's -28.6% |
| Stability / Safety | SEDG | Beta 2.03 vs SHLS's 2.08 |
| Dividends | Tie | Neither stock pays a meaningful dividend |
| Momentum (1Y) | SEDG | +161.4% vs SHLS's +66.5% |
| Efficiency (ROA) | SHLS | 3.7% ROA vs SEDG's -15.9%, ROIC 5.9% vs -29.5% |
SEDG vs SHLS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
SEDG vs SHLS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLSHLSLAGGINGSEDG
SEDGSolarEdge Technologie…
1leads
SHLSShoals Technologies G…
2leads
6 Total Categories
CATEGORYLEADERvs SEDGMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
SHLS4/5
Valuation MetricsMultiples, price ratios, and targets
Tied
—
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
SHLS7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
Tied
—
Risk & VolatilityBeta, volatility, and downside exposure
SEDG2/2
Analyst OutlookRatings, price targets, and dividends
—
—
Income & Cash Flow (Last 12 Months)
SHLS leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
SEDG is the larger business by revenue, generating $1.3B annually — 2.4x SHLS's $536M. SHLS is the more profitable business, keeping 6.3% of every revenue dollar as net income compared to SEDG's -28.6%. On growth, SHLS holds the edge at +74.9% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | SEDGSolarEdge Technol… | SHLSShoals Technologi… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $536M |
| EBITDAEarnings before interest/tax | -$225M | $73M |
| Net IncomeAfter-tax profit | -$364M | $34M |
| Free Cash FlowCash after capex | $78M | -$77M |
| Gross MarginGross profit ÷ Revenue | +18.2% | +33.5% |
| Operating MarginEBIT ÷ Revenue | -18.6% | +11.2% |
| Net MarginNet income ÷ Revenue | -28.6% | +6.3% |
| FCF MarginFCF ÷ Revenue | +6.1% | -14.5% |
| Rev. Growth (YoY)Latest quarter vs prior year | +41.5% | +74.9% |
| EPS Growth (YoY)Latest quarter vs prior year | +100.0% | — |
SHLS leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
Evenly matched — SEDG and SHLS each lead in 2 of 4 comparable metrics.
Valuation Metrics
| Metric | SEDGSolarEdge Technol… | SHLSShoals Technologi… |
|---|---|---|
| Market CapShares × price | $2.3B | $1.3B |
| Enterprise ValueMkt cap + debt − cash | $2.2B | $1.5B |
| Trailing P/EPrice ÷ TTM EPS | -5.60x | 39.20x |
| Forward P/EPrice ÷ next-FY EPS est. | 610.92x | 19.40x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | — | 22.83x |
| Price / SalesMarket cap ÷ Revenue | 1.98x | 2.77x |
| Price / BookPrice ÷ Book value/share | 5.40x | 2.20x |
| Price / FCFMarket cap ÷ FCF | 29.06x | — |
Evenly matched — SEDG and SHLS each lead in 2 of 4 comparable metrics.
Profitability & Efficiency
SHLS leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
SHLS delivers a 5.7% return on equity — every $100 of shareholder capital generates $6 in annual profit, vs $-80 for SEDG. SHLS carries lower financial leverage with a 0.29x debt-to-equity ratio, signaling a more conservative balance sheet compared to SEDG's 0.99x. On the Piotroski fundamental quality scale (0–9), SEDG scores 7/9 vs SHLS's 5/9, reflecting strong financial health.
| Metric | SEDGSolarEdge Technol… | SHLSShoals Technologi… |
|---|---|---|
| ROE (TTM)Return on equity | -79.6% | +5.7% |
| ROA (TTM)Return on assets | -15.9% | +3.7% |
| ROICReturn on invested capital | -29.5% | +5.9% |
| ROCEReturn on capital employed | -19.2% | +7.6% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 0.99x | 0.29x |
| Net DebtTotal debt minus cash | -$116M | $168M |
| Cash & Equiv.Liquid assets | $540M | $7M |
| Total DebtShort + long-term debt | $423M | $175M |
| Interest CoverageEBIT ÷ Interest expense | -2.80x | 5.91x |
SHLS leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
Evenly matched — SEDG and SHLS each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SHLS five years ago would be worth $2,724 today (with dividends reinvested), compared to $1,752 for SEDG. Over the past 12 months, SEDG leads with a +161.4% total return vs SHLS's +66.5%. The 3-year compound annual growth rate (CAGR) favors SHLS at -26.5% vs SEDG's -49.0% — a key indicator of consistent wealth creation.
| Metric | SEDGSolarEdge Technol… | SHLSShoals Technologi… |
|---|---|---|
| YTD ReturnYear-to-date | +23.1% | -13.8% |
| 1-Year ReturnPast 12 months | +161.4% | +66.5% |
| 3-Year ReturnCumulative with dividends | -86.8% | -60.2% |
| 5-Year ReturnCumulative with dividends | -82.5% | -72.8% |
| 10-Year ReturnCumulative with dividends | +70.9% | -74.7% |
| CAGR (3Y)Annualised 3-year return | -49.0% | -26.5% |
Evenly matched — SEDG and SHLS each lead in 3 of 6 comparable metrics.
Risk & Volatility
SEDG leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SEDG is the less volatile stock with a 2.03 beta — it tends to amplify market swings less than SHLS's 2.08 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | SEDGSolarEdge Technol… | SHLSShoals Technologi… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.03x | 2.08x |
| 52-Week HighHighest price in past year | $53.75 | $11.36 |
| 52-Week LowLowest price in past year | $13.73 | $3.81 |
| % of 52W HighCurrent price vs 52-week peak | +71.8% | +69.0% |
| RSI (14)Momentum oscillator 0–100 | 45.7 | 63.2 |
| Avg Volume (50D)Average daily shares traded | 3.6M | 5.1M |
SEDG leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Insufficient data to determine a leader in this category.
Analyst Outlook
Wall Street rates SEDG as "Hold" and SHLS as "Buy". Consensus price targets imply 25.4% upside for SHLS (target: $10) vs -9.1% for SEDG (target: $35).
| Metric | SEDGSolarEdge Technol… | SHLSShoals Technologi… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $35.09 | $9.83 |
| # AnalystsCovering analysts | 48 | 23 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 3 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.0% |
Insufficient data to determine a leader in this category.
Key Takeaway
SHLS leads in 2 of 6 categories (Income & Cash Flow, Profitability & Efficiency). SEDG leads in 1 (Risk & Volatility). 2 tied.
Best OverallShoals Technologies Group, … (SHLS)Leads 2 of 6 categories
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SEDG vs SHLS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is SEDG or SHLS a better buy right now?
For growth investors, SolarEdge Technologies, Inc.
(SEDG) is the stronger pick with 31. 4% revenue growth year-over-year, versus 19. 1% for Shoals Technologies Group, Inc. (SHLS). Shoals Technologies Group, Inc. (SHLS) offers the better valuation at 39. 2x trailing P/E (19. 4x forward), making it the more compelling value choice. Analysts rate Shoals Technologies Group, Inc. (SHLS) a "Buy" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SEDG or SHLS?
On forward P/E, Shoals Technologies Group, Inc.
is actually cheaper at 19. 4x.
03Which is the better long-term investment — SEDG or SHLS?
Over the past 5 years, Shoals Technologies Group, Inc.
(SHLS) delivered a total return of -72. 8%, compared to -82. 5% for SolarEdge Technologies, Inc. (SEDG). Over 10 years, the gap is even starker: SEDG returned +70. 9% versus SHLS's -74. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SEDG or SHLS?
By beta (market sensitivity over 5 years), SolarEdge Technologies, Inc.
(SEDG) is the lower-risk stock at 2. 03β versus Shoals Technologies Group, Inc. 's 2. 08β — meaning SHLS is approximately 2% more volatile than SEDG relative to the S&P 500. On balance sheet safety, Shoals Technologies Group, Inc. (SHLS) carries a lower debt/equity ratio of 29% versus 99% for SolarEdge Technologies, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — SEDG or SHLS?
By revenue growth (latest reported year), SolarEdge Technologies, Inc.
(SEDG) is pulling ahead at 31. 4% versus 19. 1% for Shoals Technologies Group, Inc. (SHLS). On earnings-per-share growth, the picture is similar: SolarEdge Technologies, Inc. grew EPS 78. 2% year-over-year, compared to 42. 9% for Shoals Technologies Group, Inc.. Over a 3-year CAGR, SHLS leads at 13. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — SEDG or SHLS?
Shoals Technologies Group, Inc.
(SHLS) is the more profitable company, earning 7. 1% net margin versus -34. 2% for SolarEdge Technologies, Inc. — meaning it keeps 7. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SHLS leads at 11. 9% versus -24. 1% for SEDG. At the gross margin level — before operating expenses — SHLS leads at 35. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is SEDG or SHLS more undervalued right now?
On forward earnings alone, Shoals Technologies Group, Inc.
(SHLS) trades at 19. 4x forward P/E versus 610. 9x for SolarEdge Technologies, Inc. — 591. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHLS: 25. 4% to $9. 83.
08Which pays a better dividend — SEDG or SHLS?
None of the stocks in this comparison currently pay a material dividend.
All are effectively zero-yield and should be held for capital appreciation rather than income.
09Is SEDG or SHLS better for a retirement portfolio?
For long-horizon retirement investors, SolarEdge Technologies, Inc.
(SEDG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Shoals Technologies Group, Inc. (SHLS) carries a higher beta of 2. 08 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SEDG: +70. 9%, SHLS: -74. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between SEDG and SHLS?
Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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