Analyzing Spruce Power (NYSE:SPRU) & SiTime (NASDAQ:SITM)

Spruce Power (NYSE:SPRU) and SiTime (NASDAQ:SITM) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Valuation & Earnings

This table compares Spruce Power and SiTime”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$111.81 million	0.43	-$26.03 million	($0.76)	-3.47
SiTime	$326.66 million	57.42	-$42.90 million	($1.01)	-703.44

Spruce Power has higher earnings, but lower revenue than SiTime. SiTime is trading at a lower price-to-earnings ratio than Spruce Power, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Spruce Power and SiTime’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spruce Power	-12.22%	-10.95%	-1.60%
SiTime	-6.38%	0.53%	0.47%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Spruce Power and SiTime, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Power	1	0	0	0	1.00
SiTime	1	0	8	1	2.90

SiTime has a consensus target price of $661.88, indicating a potential downside of 6.84%. Given SiTime’s stronger consensus rating and higher probable upside, analysts clearly believe SiTime is more favorable than Spruce Power.

Insider and Institutional Ownership

20.8% of Spruce Power shares are held by institutional investors. Comparatively, 84.3% of SiTime shares are held by institutional investors. 11.2% of Spruce Power shares are held by insiders. Comparatively, 1.4% of SiTime shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Spruce Power has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, SiTime has a beta of 2.94, indicating that its share price is 194% more volatile than the S&P 500.

Summary

SiTime beats Spruce Power on 11 of the 15 factors compared between the two stocks.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.