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RDWR vs SHLS

RDWR
Radware Ltd.
NEUTRAL
Price
$25.76
Market Cap
$1.12B
Sector
Technology
AI Confidence
85%
SHLS
Shoals Technologies Group, Inc.
NEUTRAL
Price
$7.16
Market Cap
$1.2B
Sector
Technology
AI Confidence
85%

Valuation

P/E Ratio
RDWR
57.24
SHLS
35.8
Forward P/E
RDWR
19.75
SHLS
14.17
P/B Ratio
RDWR
3.19
SHLS
2.0
P/S Ratio
RDWR
3.71
SHLS
2.53
EV/EBITDA
RDWR
38.98
SHLS
15.47

Profitability

Gross Margin
RDWR
80.67%
SHLS
35.03%
Operating Margin
RDWR
4.13%
SHLS
16.07%
Profit Margin
RDWR
6.71%
SHLS
7.06%
ROE
RDWR
5.42%
SHLS
5.8%
ROA
RDWR
1.08%
SHLS
5.5%

Growth

Revenue Growth
RDWR
9.9%
SHLS
38.6%
Earnings Growth
RDWR
123.2%
SHLS
21.0%

Financial Health

Debt/Equity
RDWR
0.04
SHLS
0.3
Current Ratio
RDWR
1.63
SHLS
2.02
Quick Ratio
RDWR
1.5
SHLS
1.24

Dividends

Dividend Yield
RDWR
--
SHLS
--
Payout Ratio
RDWR
0.0%
SHLS
0.0%

AI Verdict

RDWR NEUTRAL

RDWR presents a dichotomy between fundamental health and valuation. While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, the company boasts a pristine balance sheet with negligible debt (D/E 0.04) and exceptional gross margins (80.67%). However, the stock trades at a significant premium to its Graham Number ($9.04) and Intrinsic Value ($13.28), with a PEG ratio of 22.79 suggesting extreme overvaluation relative to current growth. The bullish case rests on explosive earnings growth (123% YoY) and a reasonable forward P/E of 19.75, but bearish technicals and weak insider sentiment temper the outlook.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.04
High gross margins (80.67%) indicating strong pricing power or low COGS
Explosive earnings growth (123.20% YoY) and consistent EPS beats
Risks
Significant valuation gap between current price ($25.76) and intrinsic value ($13.28)
Very high PEG ratio (22.79) indicating the price has outpaced growth
Bearish technical trend (0/100) and weak insider sentiment (40/100)
SHLS NEUTRAL

SHLS exhibits a concerning fundamental health profile with a Piotroski F-Score of 3/9, indicating weak financial strength. While the company shows impressive top-line growth (38.6% YoY) and an attractive PEG ratio of 0.70, the current price of $7.16 trades at a premium to both its Graham Number ($4.02) and Intrinsic Value ($5.90). The disconnect between strong growth metrics and a deteriorating health score, coupled with consistent earnings misses in recent quarters, suggests a high-risk growth play rather than a stable value investment.

Strengths
Strong revenue growth of 38.6% YoY
Attractive PEG ratio (0.70) suggesting undervaluation relative to growth
Low Debt/Equity ratio (0.30) indicating manageable leverage
Risks
Weak financial health as evidenced by a Piotroski F-Score of 3/9
Poor earnings track record with only 1 beat in the last 4 quarters
Bearish technical trend (0/100) and significant long-term price decline

Compare Another Pair

RDWR vs SHLS: Head-to-Head Comparison

This page compares Radware Ltd. (RDWR) and Shoals Technologies Group, Inc. (SHLS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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