Head-To-Head Review: Clean Energy Technologies (NASDAQ:CETY) versus Shoals Technologies Group (NASDAQ:SHLS)

Shoals Technologies Group (NASDAQ:SHLS) and Clean Energy Technologies (NASDAQ:CETY) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Shoals Technologies Group and Clean Energy Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shoals Technologies Group	5.41%	10.07%	6.38%
Clean Energy Technologies	-262.61%	-80.91%	-37.54%

Volatility & Risk

Shoals Technologies Group has a beta of 1.89, indicating that its share price is 89% more volatile than the S&P 500. Comparatively, Clean Energy Technologies has a beta of -1.47, indicating that its share price is 247% less volatile than the S&P 500.

Insider & Institutional Ownership

0.5% of Clean Energy Technologies shares are owned by institutional investors. 0.8% of Shoals Technologies Group shares are owned by insiders. Comparatively, 37.5% of Clean Energy Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Shoals Technologies Group and Clean Energy Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shoals Technologies Group	$588.06 million	2.09	$33.57 million	$0.19	38.42
Clean Energy Technologies	$2.64 million	4.75	-$6.81 million	($1.20)	-0.86

Shoals Technologies Group has higher revenue and earnings than Clean Energy Technologies. Clean Energy Technologies 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Shoals Technologies Group and Clean Energy Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shoals Technologies Group	0	6	11	0	2.65
Clean Energy Technologies	1	0	0	0	1.00

Shoals Technologies Group currently has a consensus price target of $10.71, indicating a potential upside of 46.77%. Given Shoals Technologies Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Shoals Technologies Group is more favorable than Clean Energy Technologies.

Summary

Shoals Technologies Group beats Clean Energy Technologies on 11 of the 14 factors compared between the two stocks.

About Shoals Technologies Group

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services. It provides EBOS components, including combiners; plug-n-play branch connectors and inline fuses; AC disconnects; recombiners; wireless monitoring; junction boxes; wire management; EV power cabinets; and battery energy storage systems cabinets, as well as cable assemblies, transition enclosures, and splice boxes. In addition, the company offers eMobility solutions, such as a power center, which combines equipment needed to protect the charging equipment and transform voltage levels from the electric utility to those needed on the respective site; quick connect solutions for chargers to connect to the Shoals system; big lead assembly (BLA) technology in the EV space to connect multiple chargers to a single power center; and a raceway system that protects the above ground EV BLAs in walk over and drive over applications. Further, it provides Snapshot IV, a solar operations and maintenance solution that monitors the specific voltage and current of individual solar panels and compares the results against the manufacturer's projected performance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.

About Clean Energy Technologies

Clean Energy Technologies, Inc. designs, produces, and markets clean energy products and integrated solutions that focuses on energy efficiency and renewable energy in the United States. It operates through four segments: Clean Energy HRS and CETY Europe, CETY Renewables Waste to Energy Solutions, engineering and Manufacturing Business, and CETY HK. The company offers Clean Cycle, which generates electricity by recycling wasted heat produced in manufacturing, waste to energy, and power generation facilities. It also converts waste products created in manufacturing, agriculture, wastewater treatment plants, and other industries to electricity, renewable natural gas, hydrogen, and bio char. In addition, the company offers engineering, consulting, and project management solutions. Further, the company is involved in the sourcing and suppling of liquefied natural gas to industries and municipalities located in the southern part of Sichuan Province and portions of Yunnan Province. The company was formerly known as Probe Manufacturing, Inc. and changed its name to Clean Energy Technologies, Inc. in November 2015. Clean Energy Technologies, Inc. was founded in 1993 and is headquartered in Irvine, California. Clean Energy Technologies, Inc. is a subsidiary of MGW Investment I Ltd.