Maxim Integrated Products (NASDAQ:MXIM) and Shoals Technologies Group (NASDAQ:SHLS) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Insider and Institutional Ownership
82.1% of Maxim Integrated Products shares are owned by institutional investors. Comparatively, 51.8% of Shoals Technologies Group shares are owned by institutional investors. 0.6% of Maxim Integrated Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Maxim Integrated Products and Shoals Technologies Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Maxim Integrated Products||31.77%||41.37%||20.08%|
|Shoals Technologies Group||N/A||N/A||N/A|
Earnings and Valuation
This table compares Maxim Integrated Products and Shoals Technologies Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Maxim Integrated Products||$2.19 billion||12.69||$654.69 million||$2.26||45.84|
|Shoals Technologies Group||$175.52 million||28.50||$33.77 million||$0.30||100.07|
Maxim Integrated Products has higher revenue and earnings than Shoals Technologies Group. Maxim Integrated Products 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.
This is a summary of current recommendations for Maxim Integrated Products and Shoals Technologies Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Maxim Integrated Products||0||7||2||0||2.22|
|Shoals Technologies Group||0||3||8||0||2.73|
Maxim Integrated Products currently has a consensus target price of $82.36, suggesting a potential downside of 20.50%. Shoals Technologies Group has a consensus target price of $39.36, suggesting a potential upside of 31.12%. Given Shoals Technologies Group’s stronger consensus rating and higher possible upside, analysts plainly believe Shoals Technologies Group is more favorable than Maxim Integrated Products.
Maxim Integrated Products beats Shoals Technologies Group on 8 of the 13 factors compared between the two stocks.
About Maxim Integrated Products
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits in the United States, China, rest of Asia, Europe, and internationally. The company also provides various high-frequency process technologies and capabilities used in custom designs. It serves automotive, communications and data center, consumer, and industrial markets. The company markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. Maxim Integrated Products, Inc. was founded in 1983 and is headquartered in San Jose, California.
About Shoals Technologies Group
Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions for solar energy projects in the United States. It offers EBOS components, such as cable assemblies, inline fuses, combiners, recombiners, disconnects, wireless monitoring systems, junction boxes, transition enclosures, and splice boxes that carry the electric current produced by solar panels to an inverter and to the power grid. The company sells its products to engineering, procurement, and construction firms that build solar energy projects. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.
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