Critical Survey: FTC Solar (NASDAQ:FTCI) and Fuji Electric (OTCMKTS:FELTY)

Fuji Electric (OTCMKTS:FELTY) and FTC Solar (NASDAQ:FTCI) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

45.4% of FTC Solar shares are held by institutional investors. 21.0% of FTC Solar shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Fuji Electric and FTC Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fuji Electric	1	1	0	0	1.50
FTC Solar	1	2	3	0	2.33

FTC Solar has a consensus target price of $10.50, indicating a potential upside of 348.72%. Given FTC Solar’s stronger consensus rating and higher probable upside, analysts clearly believe FTC Solar is more favorable than Fuji Electric.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fuji Electric	N/A	N/A	N/A
FTC Solar	-51.02%	N/A	-37.99%

Earnings and Valuation

This table compares Fuji Electric and FTC Solar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fuji Electric	N/A	N/A	N/A	N/A	N/A
FTC Solar	$99.69 million	0.39	-$79.58 million	($6.25)	-0.37

Fuji Electric has higher earnings, but lower revenue than FTC Solar.

Summary

FTC Solar beats Fuji Electric on 6 of the 8 factors compared between the two stocks.

About Fuji Electric

Fuji Electric Co., Ltd., together with its subsidiaries, develops power semiconductors and electronics solutions in Japan and internationally. It operates through Power Electronics Energy, Power Electronics Industry, Semiconductor, Power Generation, Food and Beverages Distribution, Others segments. The company also offers drivers and inverters including AC drivers, motors, and servo systems; semiconductors and photoconductors; power supply products, which includes uninterruptible power systems, solar inverters, data centers, rectifiers, and formers; sensors and measurements, such as instrumentation and radiation monitoring systems; and factory automation systems. In addition, it provides distribution and controls including LV and MV distributions, motor controls, and energy control equipment; transmission and distribution comprising oil-immersed transformers, shunt reactors, cast resin transformers, gas insulated switchgears, MV and LV switchgears and control centers, vacuum circuit breakers, and pure water vaporization cooling silicon rectifiers; and social infrastructure, which includes tunnel ventilation systems, marine environment protection systems, and electrical equipment for railcars. Further, the company offers thermal and geothermal power generation, nuclear power, and fuel cell; energy management including power system simulator; can and PET bottle beverage vending machine, coin mechanism, and bill validators; service and after sales services; and equipment upgrades. Fuji Electric Co., Ltd. was formerly known as Fuji Electric Holdings Co., Ltd. and changed its name to Fuji Electric Co., Ltd. in 2011. The company was incorporated in 1923 and is headquartered in Tokyo, Japan.

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.