Vivint Solar (NYSE:VSLR) and SmartHeat (OTCMKTS:HEAT) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.

Volatility and Risk

Vivint Solar has a beta of -0.36, meaning that its share price is 136% less volatile than the S&P 500. Comparatively, SmartHeat has a beta of 3.38, meaning that its share price is 238% more volatile than the S&P 500.

Insider & Institutional Ownership

89.4% of Vivint Solar shares are owned by institutional investors. 4.2% of Vivint Solar shares are owned by company insiders. Comparatively, 2.2% of SmartHeat shares are owned by company 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.

Earnings and Valuation

This table compares Vivint Solar and SmartHeat’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vivint Solar $268.03 million 2.36 $209.09 million ($1.58) -3.38
SmartHeat $770,000.00 0.00 -$8.38 million N/A N/A

Vivint Solar has higher revenue and earnings than SmartHeat.

Analyst Recommendations

This is a breakdown of recent ratings for Vivint Solar and SmartHeat, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vivint Solar 0 0 3 0 3.00
SmartHeat 0 0 0 0 N/A

Vivint Solar presently has a consensus target price of $6.00, indicating a potential upside of 12.36%. Given Vivint Solar’s higher possible upside, analysts clearly believe Vivint Solar is more favorable than SmartHeat.

Profitability

This table compares Vivint Solar and SmartHeat’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vivint Solar 61.71% -50.31% -11.01%
SmartHeat N/A N/A N/A

Summary

Vivint Solar beats SmartHeat on 8 of the 11 factors compared between the two stocks.

About Vivint Solar

Vivint Solar, Inc. provides distributed solar energy to residential, commercial, and industrial customers in the United States. The company operates in two segments, Residential, and Commercial and Industrial. It owns and installs solar energy systems through long-term customer contracts. The company also sells photovoltaic installation products, as well as solar renewable energy certificates. As of December 31, 2017, it had an aggregate capacity of 864.9 megawatts covering approximately 126,800 homes in 21 states. The company was formerly known as V Solar Holdings, Inc. and changed its name to Vivint Solar, Inc. in April 2014. Vivint Solar, Inc. was founded in 2011 and is headquartered in Lehi, Utah.

About SmartHeat

SmartHeat Inc. does not have significant operations. It intends to seek potential assets, property, or businesses to acquire, in a business combination, by reorganization, merger, or acquisition. Previously, it was engaged in the manufacture and sale of heat pumps for commercial and residential applications. The company was formerly known as Pacific Goldrim Resources, Inc. and changed its name to SmartHeat Inc. in April 2008. SmartHeat Inc. was incorporated in 2006 and is headquartered in Shenyang, China.

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