WallStSmart

Canadian Solar Inc (CSIQ)vsShoals Technologies Group Inc (SHLS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Canadian Solar Inc generates 945% more annual revenue ($5.60B vs $535.53M). SHLS leads profitability with a 6.3% profit margin vs -1.9%. CSIQ appears more attractively valued with a PEG of 0.16. SHLS earns a higher WallStSmart Score of 60/100 (C+).

CSIQ

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 3.5Value: 8.3Quality: 3.0
Piotroski: 2/9Altman Z: 0.72

SHLS

Buy

60

out of 100

Grade: C+

Growth: 8.7Profit: 5.0Value: 6.0Quality: 7.0
Piotroski: 5/9Altman Z: 2.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CSIQUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$108.76

Current Price

$17.16

$91.60 discount

UndervaluedFair: $108.76Overvalued
SHLSUndervalued (+49.0%)

Margin of Safety

+49.0%

Fair Value

$19.20

Current Price

$10.81

$8.39 discount

UndervaluedFair: $19.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CSIQ3 strengths · Avg: 10.0/10
PEG RatioValuation
0.1610/10

Growing faster than its price suggests

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

EPS GrowthGrowth
300.0%10/10

Earnings expanding 300.0% YoY

SHLS2 strengths · Avg: 9.0/10
Revenue GrowthGrowth
74.9%10/10

Revenue surging 74.9% year-over-year

EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

Areas to Watch

CSIQ4 concerns · Avg: 2.5/10
Market CapQuality
$1.29B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Return on EquityProfitability
-4.4%2/10

ROE of -4.4% — below average capital efficiency

Revenue GrowthGrowth
-20.0%2/10

Revenue declined 20.0%

SHLS4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

P/E RatioValuation
62.3x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-49.10M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CSIQ

The strongest argument for CSIQ centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.16 suggests the stock is reasonably priced for its growth.

Bull Case : SHLS

The strongest argument for SHLS centers on Revenue Growth, EPS Growth. Revenue growth of 74.9% demonstrates continued momentum. PEG of 1.08 suggests the stock is reasonably priced for its growth.

Bear Case : CSIQ

The primary concerns for CSIQ are Market Cap, Piotroski F-Score, Return on Equity. Debt-to-equity of 2.76 is elevated, increasing financial risk.

Bear Case : SHLS

The primary concerns for SHLS are Return on Equity, Profit Margin, P/E Ratio. A P/E of 62.3x leaves little room for execution misses.

Key Dynamics to Monitor

CSIQ profiles as a turnaround stock while SHLS is a hypergrowth play — different risk/reward profiles.

SHLS carries more volatility with a beta of 1.74 — expect wider price swings.

SHLS is growing revenue faster at 74.9% — sustainability is the question.

SHLS generates stronger free cash flow (-49M), providing more financial flexibility.

Bottom Line

SHLS scores higher overall (60/100 vs 55/100) and 74.9% revenue growth. CSIQ offers better value entry with a 80.8% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Canadian Solar Inc

TECHNOLOGY · SOLAR · USA

Canadian Solar Inc. designs, develops, manufactures and sells solar ingots, wafers, cells, modules and other solar energy products. The company is headquartered in Guelph, Canada.

Shoals Technologies Group Inc

TECHNOLOGY · SOLAR · USA

Shoals Technologies Group, Inc. provides Electric Balance System (EBOS) solutions for solar energy projects in the United States. The company is headquartered in Portland, Tennessee.

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