Head-To-Head Comparison: SolarEdge Technologies (NASDAQ:SEDG) vs. NeoMagic (OTCMKTS:NMGC)

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

Institutional and Insider Ownership

95.1% of SolarEdge Technologies shares are held by institutional investors. 0.7% of SolarEdge Technologies shares are held by insiders. Comparatively, 12.7% of NeoMagic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for SolarEdge Technologies and NeoMagic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	7	18	3	1	1.93
NeoMagic	0	0	0	0	0.00

SolarEdge Technologies presently has a consensus target price of $20.84, suggesting a potential upside of 55.78%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, equities research analysts plainly believe SolarEdge Technologies is more favorable than NeoMagic.

Valuation and Earnings

This table compares SolarEdge Technologies and NeoMagic”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	0.26	$34.33 million	($29.04)	-0.46
NeoMagic	N/A	N/A	N/A	N/A	N/A

SolarEdge Technologies has higher revenue and earnings than NeoMagic.

Profitability

This table compares SolarEdge Technologies and NeoMagic’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%
NeoMagic	N/A	N/A	N/A

Volatility and Risk

SolarEdge Technologies has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, NeoMagic has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Summary

SolarEdge Technologies beats NeoMagic on 7 of the 11 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 NeoMagic

NeoMagic Corporation designs and delivers semiconductors and software solutions for video, television, imaging, graphic, and audio devices. It offers microcontrollers; horizon digital picture frame and digital mobile TV solutions; and SOC processors, such as application processors and Neomobile TV solutions. The company, through its MercadoMagico.com division, operates an e-Commerce platform that allows user to buy and sell products from one another or buy premium electronic products. It sells its applications processors under the MiMagic brand name. The company was founded in 1993 and is based in Milpitas, California.