SHLS vs REZI

For growth investors, Shoals Technologies Group, Inc.

(SHLS) is the stronger pick with 19. 1% revenue growth year-over-year, versus 10. 5% for Resideo Technologies, Inc. (REZI). Shoals Technologies Group, Inc. (SHLS) offers the better valuation at 41. 6x trailing P/E (20. 6x 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.

On forward P/E, Resideo Technologies, Inc.

is actually cheaper at 13. 3x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Resideo Technologies, Inc.

(REZI) delivered a total return of +37. 1%, compared to -71. 6% for Shoals Technologies Group, Inc. (SHLS). Over 10 years, the gap is even starker: REZI returned +41. 7% versus SHLS's -73. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Shoals Technologies Group, Inc.

(SHLS) is the lower-risk stock at 2. 08β versus Resideo Technologies, Inc. 's 2. 27β — meaning REZI is approximately 9% more volatile than SHLS relative to the S&P 500. On balance sheet safety, Shoals Technologies Group, Inc. (SHLS) carries a lower debt/equity ratio of 29% versus 109% for Resideo Technologies, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Shoals Technologies Group, Inc.

(SHLS) is pulling ahead at 19. 1% versus 10. 5% for Resideo Technologies, Inc. (REZI). On earnings-per-share growth, the picture is similar: Shoals Technologies Group, Inc. grew EPS 42. 9% year-over-year, compared to -718. 0% for Resideo Technologies, 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.

Shoals Technologies Group, Inc.

(SHLS) is the more profitable company, earning 7. 1% net margin versus -7. 1% for Resideo 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 8. 1% for REZI. 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.

On forward earnings alone, Resideo Technologies, Inc.

(REZI) trades at 13. 3x forward P/E versus 20. 6x for Shoals Technologies Group, Inc. — 7. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHLS: 18. 0% to $9. 83.

In this comparison, REZI (0.

6% yield) pays a dividend. SHLS does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Resideo Technologies, Inc.

(REZI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 6% yield). 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 (REZI: +41. 7%, SHLS: -73. 1%), 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.

These companies operate in different sectors (SHLS (Energy) and REZI (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: SHLS is a small-cap high-growth stock; REZI is a small-cap quality compounder stock. REZI pays a dividend while SHLS does not, making them suitable for different income and tax situations. 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.