Comparing ASE Technology (NYSE:ASX) and SolarEdge Technologies (NASDAQ:SEDG)

SolarEdge Technologies (NASDAQ:SEDG) and ASE Technology (NYSE:ASX) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SolarEdge Technologies and ASE Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	8	19	2	0	1.79
ASE Technology	0	0	2	0	3.00

SolarEdge Technologies currently has a consensus price target of $22.04, indicating a potential upside of 56.39%. Given SolarEdge Technologies’ higher probable upside, research analysts clearly believe SolarEdge Technologies is more favorable than ASE Technology.

Valuation and Earnings

This table compares SolarEdge Technologies and ASE Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarEdge Technologies	$2.98 billion	0.27	$34.33 million	($29.04)	-0.49
ASE Technology	$593.73 billion	0.04	$1.16 billion	$0.45	21.87

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

Profitability

This table compares SolarEdge Technologies and ASE Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarEdge Technologies	-158.19%	-65.79%	-32.71%
ASE Technology	5.47%	10.05%	4.69%

Risk & Volatility

SolarEdge Technologies has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, ASE Technology has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Institutional and Insider Ownership

95.1% of SolarEdge Technologies shares are held by institutional investors. Comparatively, 6.8% of ASE Technology shares are held by institutional investors. 0.7% of SolarEdge Technologies shares are held by company insiders. Comparatively, 22.9% of ASE Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

ASE Technology beats SolarEdge Technologies on 9 of the 13 factors compared between the two stocks.

About SolarEdge Technologies

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.

About ASE Technology

ASE Technology Holding Co., Ltd., together with its subsidiaries, provides semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally. It develops, constructs, sells, leases, and manages real estate properties; produces substrates; offers information software, equipment leasing, investment advisory, and warehousing management services; commercial complex, after-sales, and support services; manages parking lot services; processes and sells computer and communication peripherals, electronic components, telecommunications equipment, and motherboards; and imports and exports goods and technology. ASE Technology Holding Co., Ltd. was founded in 1984 and is based in Kaohsiung, Taiwan.