Bel Fuse (NASDAQ:BELFA) vs. Spruce Power (NYSE:SPRU) Financial Analysis

Bel Fuse (NASDAQ:BELFA) and Spruce Power (NYSE:SPRU) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	7.84%	22.38%	10.02%
Spruce Power	-12.22%	-10.82%	-1.59%

Volatility & Risk

Bel Fuse has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.

Institutional & Insider Ownership

6.0% of Bel Fuse shares are owned by institutional investors. Comparatively, 20.8% of Spruce Power shares are owned by institutional investors. 4.8% of Bel Fuse shares are owned by insiders. Comparatively, 12.7% of Spruce Power shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Bel Fuse and Spruce Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	1	0	1	3.00
Spruce Power	1	0	0	0	1.00

Bel Fuse currently has a consensus price target of $250.00, suggesting a potential upside of 8.36%. Given Bel Fuse’s stronger consensus rating and higher probable upside, analysts plainly believe Bel Fuse is more favorable than Spruce Power.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$675.46 million	4.34	$61.54 million	$4.15	55.60
Spruce Power	$111.81 million	0.46	-$26.03 million	($1.44)	-1.96

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

Summary

Bel Fuse beats Spruce Power on 12 of the 14 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company's products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

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.