Financial Analysis: Maxeon Solar Technologies (NASDAQ:MAXN) versus AUO (OTCMKTS:AUOTY)

AUO (OTCMKTS:AUOTY) and Maxeon Solar Technologies (NASDAQ:MAXN) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Institutional and Insider Ownership

47.7% of Maxeon Solar Technologies shares are owned by institutional investors. 16.0% of AUO shares are owned by company insiders. Comparatively, 0.9% of Maxeon Solar Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares AUO and Maxeon Solar Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AUO	N/A	N/A	N/A	N/A	N/A
Maxeon Solar Technologies	$689.01 million	0.01	-$275.83 million	($553.47)	-0.01

AUO has higher earnings, but lower revenue than Maxeon Solar Technologies.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AUO and Maxeon Solar Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AUO	0	0	0	0	0.00
Maxeon Solar Technologies	5	3	0	0	1.38

Maxeon Solar Technologies has a consensus price target of $26,072.00, suggesting a potential upside of 345,682.49%. Given Maxeon Solar Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Maxeon Solar Technologies is more favorable than AUO.

Profitability

This table compares AUO and Maxeon Solar Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AUO	N/A	N/A	N/A
Maxeon Solar Technologies	-94.16%	-1,598.11%	-85.09%

Volatility and Risk

AUO has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Maxeon Solar Technologies has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Summary

Maxeon Solar Technologies beats AUO on 5 of the 9 factors compared between the two stocks.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.

About Maxeon Solar Technologies

Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.