Critical Contrast: AGL Energy (OTCMKTS:AGLNF) and Sunrun (NASDAQ:RUN)

Sunrun (NASDAQ:RUN) and AGL Energy (OTCMKTS:AGLNF) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, valuation, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunrun	11.59%	9.59%	1.77%
AGL Energy	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Sunrun and AGL Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrun	2	8	12	0	2.45
AGL Energy	0	0	1	0	3.00

Sunrun currently has a consensus target price of $16.81, suggesting a potential upside of 99.84%. Given Sunrun’s higher possible upside, equities analysts plainly believe Sunrun is more favorable than AGL Energy.

Insider and Institutional Ownership

91.7% of Sunrun shares are held by institutional investors. Comparatively, 15.3% of AGL Energy shares are held by institutional investors. 3.5% of Sunrun shares are held by company 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.

Earnings & Valuation

This table compares Sunrun and AGL Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrun	$2.96 billion	0.69	$449.95 million	$1.48	5.68
AGL Energy	N/A	N/A	N/A	$1.02	5.83

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

Summary

Sunrun beats AGL Energy on 9 of the 11 factors compared between the two stocks.

About Sunrun

Sunrun Inc. designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.

About AGL Energy

AGL Energy Limited supplies energy and other essential services to residential, small and large businesses, and wholesale customers in Australia. It operates through three segments: Customer Markets, Integrated Energy, and Investments. The company engages in retailing of electricity, gas, broadband, mobile, voice, solar, and energy products and services; and operates power generation portfolio and other assets including coal, gas and renewable generation, natural gas storage and production, and development projects. It also offers renewable energy schemes; and controls dispatch of owned and contracted generation assets, gas offtake agreements, and associated portfolio of energy hedging products. In addition, the company offers coal and gas-fired generation; and renewable energy sources, such as wind, hydro and solar, batteries and other firming technology; and gas production and storage assets. AGL Energy Limited was founded in 1837 and is based in Sydney, Australia.