Head to Head Comparison: Shoals Technologies Group (NASDAQ:SHLS) and SMART Global (NASDAQ:SGH)

SMART Global (NASDAQ:SGH) and Shoals Technologies Group (NASDAQ:SHLS) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Valuation & Earnings

This table compares SMART Global and Shoals Technologies Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SMART Global	$1.44 billion	0.75	-$187.53 million	($3.08)	-6.67
Shoals Technologies Group	$488.94 million	1.75	$39.97 million	$0.18	28.50

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SMART Global	-14.35%	8.86%	2.01%
Shoals Technologies Group	5.13%	12.75%	8.38%

Risk & Volatility

SMART Global has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for SMART Global and Shoals Technologies Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SMART Global	0	0	4	0	3.00
Shoals Technologies Group	4	5	11	0	2.35

SMART Global currently has a consensus price target of $32.25, suggesting a potential upside of 57.01%. Shoals Technologies Group has a consensus price target of $11.06, suggesting a potential upside of 115.51%. Given Shoals Technologies Group’s higher possible upside, analysts clearly believe Shoals Technologies Group is more favorable than SMART Global.

Summary

Shoals Technologies Group beats SMART Global on 10 of the 12 factors compared between the two stocks.

About SMART Global

SMART Global Holdings, Inc., a memory-focused company, engages in the designing and development of enterprise solutions in the United States, China, Europe, and internationally. It operates through Memory Solutions, Intelligent Platform Solutions, and LED Solutions segments. The company offers dynamic random access memory modules, solid-state and flash storage, and other advanced memory solutions for networking and telecom, data analytics, artificial intelligence and machine learning applications; and supply chain services including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging services. It also provides Penguin Computing that focus on technical computing for core and cloud environments through HPC and AI solutions; and Penguin Edge, an edge computing solution for embedded and wireless applications including high-performance products for government, health care, industrial, and telecommunications applications. In addition, the company offers Stratus, which provides simplified, protected, and autonomous fault tolerant computing solutions in the data center and at the Edge through hardware and software services; and leading-edge solutions to education, energy, financial services, government, hyperscale, and manufacturing markets. Further, it provides LED-based products comprising blue and green LED chips based on gallium nitride, and related materials under Cree LED brand; and surface mount devices under the Cree LED XLamp and J Series brand. The company sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, e-commerce, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Milpitas, California.

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.