Vestas Wind System (OTCMKTS: VWDRY) and SunPower (NASDAQ:SPWR) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Vestas Wind System pays an annual dividend of $0.29 per share and has a dividend yield of 1.2%. SunPower does not pay a dividend. Vestas Wind System pays out 18.0% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Vestas Wind System and SunPower’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vestas Wind System||$11.24 billion||1.38||$1.01 billion||$1.61||14.89|
|SunPower||$1.87 billion||0.58||-$851.16 million||($6.10)||-1.27|
Vestas Wind System has higher revenue and earnings than SunPower. SunPower is trading at a lower price-to-earnings ratio than Vestas Wind System, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Vestas Wind System has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, SunPower has a beta of 2.7, meaning that its stock price is 170% more volatile than the S&P 500.
This table compares Vestas Wind System and SunPower’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vestas Wind System||9.00%||28.59%||8.85%|
Insider & Institutional Ownership
0.1% of Vestas Wind System shares are owned by institutional investors. Comparatively, 27.2% of SunPower shares are owned by institutional investors. 0.9% of SunPower shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current ratings for Vestas Wind System and SunPower, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vestas Wind System||0||1||2||0||2.67|
SunPower has a consensus price target of $8.71, suggesting a potential upside of 12.27%. Given SunPower’s higher probable upside, analysts plainly believe SunPower is more favorable than Vestas Wind System.
Vestas Wind System beats SunPower on 10 of the 16 factors compared between the two stocks.
About Vestas Wind System
Vestas Wind Systems A/S develops, manufactures, sells, and services wind turbines worldwide. The company operates in two segments, Power solutions and Service. The Project segment sells wind power plants, wind turbines, etc. The Service segment engages in the sale of service contracts, spare parts, and related activities. The company was founded in 1898 and is headquartered in Aarhus, Denmark.
SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation. The Company offers solar module technology and solar power systems that are designed to generate electricity over a system life over 25 years; Integrated Smart Energy software solutions that enable customers to manage and optimize the cooperation center of excellence (CCOE) measurement; Installation, construction, and ongoing maintenance and monitoring services; and financing solutions that provide customers a range of options for purchasing or leasing solar products at competitive energy rates. The Company offers a set of residential solutions that deliver value to homeowners and its dealer partners.
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