WallStSmart

Nextracker Inc. Class A Common Stock (NXT)vsShoals Technologies Group Inc (SHLS)

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Smart Verdict

WallStSmart Research — data-driven comparison

Nextracker Inc. Class A Common Stock generates 658% more annual revenue ($3.60B vs $475.33M). NXT leads profitability with a 16.4% profit margin vs 7.1%. SHLS appears more attractively valued with a PEG of 0.61. SHLS earns a higher WallStSmart Score of 70/100 (B-).

NXT

Buy

62

out of 100

Grade: C+

Growth: 8.7Profit: 8.5Value: 4.7Quality: 6.3
Piotroski: 4/9Altman Z: 1.51

SHLS

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 5.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

NXTSignificantly Overvalued (-57.4%)

Margin of Safety

-57.4%

Fair Value

$76.20

Current Price

$130.42

$54.22 premium

UndervaluedFair: $76.20Overvalued
SHLSSignificantly Overvalued (-21.2%)

Margin of Safety

-21.2%

Fair Value

$8.08

Current Price

$6.91

$1.17 premium

UndervaluedFair: $8.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

NXT2 strengths · Avg: 10.0/10
Return on EquityProfitability
33.2%10/10

Every $100 of equity generates 33 in profit

Revenue GrowthGrowth
33.9%10/10

Revenue surging 33.9% year-over-year

SHLS4 strengths · Avg: 8.5/10
Revenue GrowthGrowth
38.6%10/10

Revenue surging 38.6% year-over-year

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
21.0%8/10

Earnings expanding 21.0% YoY

Areas to Watch

NXT4 concerns · Avg: 3.5/10
P/E RatioValuation
31.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Altman Z-ScoreHealth
1.514/10

Distress zone — elevated risk

PEG RatioValuation
3.042/10

Expensive relative to growth rate

SHLS4 concerns · Avg: 3.3/10
P/E RatioValuation
34.5x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.16B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
7.1%3/10

7.1% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : NXT

The strongest argument for NXT centers on Return on Equity, Revenue Growth. Profitability is solid with margins at 16.4% and operating margin at 19.4%. Revenue growth of 33.9% demonstrates continued momentum.

Bull Case : SHLS

The strongest argument for SHLS centers on Revenue Growth, PEG Ratio, Price/Book. Revenue growth of 38.6% demonstrates continued momentum. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bear Case : NXT

The primary concerns for NXT are P/E Ratio, Price/Book, Altman Z-Score.

Bear Case : SHLS

The primary concerns for SHLS are P/E Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

NXT profiles as a growth stock while SHLS is a hypergrowth play — different risk/reward profiles.

NXT carries more volatility with a beta of 2.42 — expect wider price swings.

SHLS is growing revenue faster at 38.6% — sustainability is the question.

NXT generates stronger free cash flow (121M), providing more financial flexibility.

Bottom Line

SHLS scores higher overall (70/100 vs 62/100) and 38.6% revenue growth. Both earn "Strong 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.

Nextracker Inc. Class A Common Stock

TECHNOLOGY · SOLAR · USA

Nextracker Inc., an energy solutions company, provides solar tracker solutions for PV projects. The company is headquartered in Fremont, California.

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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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