Comparing SemiLEDs (NASDAQ:LEDS) & FTC Solar (NASDAQ:FTCI)

SemiLEDs (NASDAQ:LEDS) and FTC Solar (NASDAQ:FTCI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares SemiLEDs and FTC Solar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SemiLEDs	$5.18 million	1.78	-$2.04 million	($0.37)	-3.46
FTC Solar	$127.00 million	0.34	-$50.29 million	($3.80)	-0.89

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

Analyst Ratings

This is a breakdown of current recommendations for SemiLEDs and FTC Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SemiLEDs	0	0	0	0	0.00
FTC Solar	0	4	2	0	2.33

FTC Solar has a consensus target price of $8.50, indicating a potential upside of 152.23%. Given FTC Solar’s stronger consensus rating and higher probable upside, analysts clearly believe FTC Solar is more favorable than SemiLEDs.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SemiLEDs	-39.28%	-91.96%	-17.03%
FTC Solar	-82.90%	-98.67%	-44.11%

Risk & Volatility

SemiLEDs has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Insider & Institutional Ownership

76.3% of SemiLEDs shares are held by institutional investors. Comparatively, 45.4% of FTC Solar shares are held by institutional investors. 52.1% of SemiLEDs shares are held by insiders. Comparatively, 22.6% of FTC Solar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

SemiLEDs beats FTC Solar on 8 of the 14 factors compared between the two stocks.

About SemiLEDs

SemiLEDs Corporation develops, manufactures, and sells light emitting diode (LED) chips, LED components, and LED modules and systems in the United States, Taiwan, the Netherlands, Germany, Japan, and internationally. The company also sells enhanced vertical, LED product series in blue, white, green, and UV; LED chips to packagers or distributors; and lighting products primarily to original design manufacturers of lighting products and the end-users of lighting devices, as well as packs and sells its LED chips. Its products are used for general lighting applications, including commercial, industrial, and residential lighting; and specialty industrial applications, such as ultraviolet or UV, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, germicidal and viricidal devices LED lighting for horticulture applications, architectural lighting, and entertainment lighting. The company was incorporated in 2005 and is based in Chu-Nan, Taiwan.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.