Sunrun (NASDAQ: RUN) and Renesola (NYSE:SOL) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, risk, valuation and institutional ownership.

Earnings & Valuation

This table compares Sunrun and Renesola’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sunrun $459.27 million 1.63 -$83.86 million $0.86 8.28
Renesola $825.75 million 0.06 $41.45 million ($3.17) -0.77

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

Risk and Volatility

Sunrun has a beta of -0.6, meaning that its stock price is 160% less volatile than the S&P 500. Comparatively, Renesola has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Sunrun and Renesola, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunrun 0 2 6 0 2.75
Renesola 1 1 0 0 1.50

Sunrun presently has a consensus price target of $10.19, indicating a potential upside of 43.08%. Renesola has a consensus price target of $3.00, indicating a potential upside of 22.95%. Given Sunrun’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sunrun is more favorable than Renesola.

Insider & Institutional Ownership

71.5% of Sunrun shares are owned by institutional investors. Comparatively, 12.6% of Renesola shares are owned by institutional investors. 24.1% of Sunrun shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Sunrun and Renesola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunrun 19.88% 10.42% 2.73%
Renesola -7.71% -81.60% -5.36%

Summary

Sunrun beats Renesola on 10 of the 13 factors compared between the two stocks.

About Sunrun

Sunrun Inc. is engaged in the design, development, installation, sale, ownership and maintenance of residential solar energy systems (Projects) in the United States. The Company is engaged in providing solar energy services and products to its customers. As of December 31, 2016, it operated a fleet of residential solar energy systems in the United States, with approximately 134,000 customers across 16 states, as well as the District of Columbia. The Company sells to homeowners over the phone, in the field through canvassing and in-home sales and through retail sales channels through its strategic partners. The solar service offerings are provided through its lease and power purchase agreements. It sells solar service offerings and installs solar energy systems for homeowners through its direct-to-consumer channel. It sells solar energy systems to homeowners, as well as related products, such as solar panels, inverters, racking systems and other solar-related equipment to resellers.

About Renesola

ReneSola Ltd is a holding company. The Company is a brand and technology provider of energy-efficient products based in China. The Company’s segments include wafer sales, cell and module sales, and solar power projects. The wafer sales segment involves the manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The cell and module sales segment involves the manufacture and sales of solar cells and modules. The solar power projects segment involves sales of solar power projects and electricity generation revenue of certain project assets it owns and operates. The Company provides its customers with solar power products and processing services. It provides solar power products to a network of suppliers and customers, which includes manufacturers of solar cells and modules and distributors, installers and end users of solar modules. The Company manufactures solar-grade polysilicon, solar wafers, cells and modules.

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