Reviewing Sunrun (NASDAQ:RUN) and Solar Integrated Roofing (OTCMKTS:SIRC)

Sunrun (NASDAQ:RUN) and Solar Integrated Roofing (OTCMKTS:SIRC) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

91.7% of Sunrun shares are held by institutional investors. 3.4% of Sunrun shares are held by company insiders. Comparatively, 4.3% of Solar Integrated Roofing shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sunrun and Solar Integrated Roofing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrun	1	9	14	1	2.60
Solar Integrated Roofing	0	0	0	0	0.00

Sunrun currently has a consensus price target of $19.70, indicating a potential upside of 6.39%. Given Sunrun’s stronger consensus rating and higher possible upside, analysts plainly believe Sunrun is more favorable than Solar Integrated Roofing.

Profitability

This table compares Sunrun and Solar Integrated Roofing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunrun	-106.50%	19.34%	3.38%
Solar Integrated Roofing	N/A	N/A	N/A

Earnings and Valuation

This table compares Sunrun and Solar Integrated Roofing”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrun	$2.04 billion	2.11	-$2.85 billion	($11.18)	-1.66
Solar Integrated Roofing	$37.31 million	0.00	-$27.40 million	($0.03)	N/A

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

Volatility and Risk

Sunrun has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Solar Integrated Roofing has a beta of -1.68, indicating that its stock price is 268% less volatile than the S&P 500.

Summary

Sunrun beats Solar Integrated Roofing on 9 of the 13 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 Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.