Comparing FTC Solar (NASDAQ:FTCI) and Real Goods Solar (OTCMKTS:RGSEQ)

Real Goods Solar (OTCMKTS:RGSEQ) and FTC Solar (NASDAQ:FTCI) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

45.4% of FTC Solar shares are owned by institutional investors. 0.9% of Real Goods Solar shares are owned by insiders. Comparatively, 21.0% of FTC Solar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Real Goods Solar and FTC Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Goods Solar	N/A	N/A	N/A
FTC Solar	-73.04%	-262.78%	-55.79%

Analyst Recommendations

This is a breakdown of current ratings for Real Goods Solar and FTC Solar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Goods Solar	0	0	0	0	0.00
FTC Solar	1	2	1	0	2.00

FTC Solar has a consensus target price of $4.25, indicating a potential downside of 43.56%. Given Real Goods Solar’s higher possible upside, equities research analysts plainly believe Real Goods Solar is more favorable than FTC Solar.

Valuation and Earnings

This table compares Real Goods Solar and FTC Solar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Goods Solar	N/A	N/A	N/A	N/A	N/A
FTC Solar	$47.35 million	2.37	-$48.61 million	($3.92)	-1.92

Real Goods Solar has higher earnings, but lower revenue than FTC Solar.

Summary

FTC Solar beats Real Goods Solar on 5 of the 9 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. provides solar energy systems to homeowners, and commercial building owners. It offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction activities. The firm operates through three segments: Solar Division, POWERHOUSE and Other. The Solar Division segment engages the installation of solar energy systems for homeowners, including lease financing thereof, and small business commercial. The POWERHOUSE segment engages in the manufacturing and sales of solar shingles. The Other segment engages in corporate operations. The Other segment consists of corporate operations. The company was founded in 1978 and is headquartered in Denver, CO.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.