China BAK Battery (NASDAQ:CBAT) versus SolarEdge Technologies (NASDAQ:SEDG) Head-To-Head Comparison
by Mitch Edgeman · The Markets DailySolarEdge Technologies (NASDAQ:SEDG – Get Free Report) and China BAK Battery (NASDAQ:CBAT – Get Free Report) are both small-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
95.1% of SolarEdge Technologies shares are owned by institutional investors. Comparatively, 2.0% of China BAK Battery shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by company insiders. Comparatively, 0.8% of China BAK Battery shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares SolarEdge Technologies and China BAK Battery’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarEdge Technologies | -17.34% | -19.80% | -3.68% |
| China BAK Battery | -7.43% | -15.32% | -4.23% |
Risk and Volatility
SolarEdge Technologies has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, China BAK Battery has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations for SolarEdge Technologies and China BAK Battery, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarEdge Technologies | 5 | 11 | 2 | 0 | 1.83 |
| China BAK Battery | 1 | 0 | 0 | 0 | 1.00 |
SolarEdge Technologies presently has a consensus price target of $36.93, suggesting a potential upside of 38.15%. Given SolarEdge Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe SolarEdge Technologies is more favorable than China BAK Battery.
Valuation & Earnings
This table compares SolarEdge Technologies and China BAK Battery”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarEdge Technologies | $1.32 billion | 1.25 | -$405.45 million | ($3.80) | -7.04 |
| China BAK Battery | $229.87 million | 0.40 | -$9.38 million | ($0.18) | -5.70 |
China BAK Battery has lower revenue, but higher earnings than SolarEdge Technologies. SolarEdge Technologies is trading at a lower price-to-earnings ratio than China BAK Battery, indicating that it is currently the more affordable of the two stocks.
Summary
SolarEdge Technologies beats China BAK Battery on 8 of the 14 factors compared between the two stocks.
About SolarEdge Technologies
SolarEdge Technologies develops smart energy technologies for residential, commercial and utility-scale applications. Founded in 2006, the company is known for its DC-optimized inverter system, which combines power optimizers with inverters to help manage solar energy production at the panel level. Its product portfolio includes solar inverters and power optimizers, energy storage systems, monitoring and energy-management software, electric-vehicle charging equipment and related services. These offerings are designed to support the generation, storage and use of electricity from solar and other energy sources.
About China BAK Battery
China BAK Battery, Inc., operating as CBAK Energy Technology, develops and manufactures rechargeable lithium-ion batteries and battery systems. The company’s product portfolio has included cylindrical battery cells, battery modules and customized battery packs designed for applications that require portable or stationary energy storage. Its products serve markets such as electric vehicles, light electric vehicles, power tools, uninterruptible power supplies and renewable-energy storage. The company has also pursued battery technologies based on lithium iron phosphate and other lithium-ion chemistries, with an emphasis on safety, power output and cycle life.