Critical Analysis: Fervo Energy (NASDAQ:FRVO) & Sunrun (NASDAQ:RUN)

Fervo Energy (NASDAQ:FRVO) and Sunrun (NASDAQ:RUN) are both mid-cap utilities companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

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

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

Valuation and Earnings

This table compares Fervo Energy and Sunrun”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fervo Energy	$312,000.00	17,156.72	N/A	N/A	N/A
Sunrun	$2.96 billion	0.72	$449.95 million	$1.48	6.01

Sunrun has higher revenue and earnings than Fervo Energy.

Insider & Institutional Ownership

91.7% of Sunrun shares are owned by institutional investors. 3.5% of Sunrun shares are owned 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Fervo Energy and Sunrun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fervo Energy	1	2	11	2	2.88
Sunrun	2	8	12	0	2.45

Fervo Energy presently has a consensus target price of $44.00, suggesting a potential upside of 142.29%. Sunrun has a consensus target price of $16.81, suggesting a potential upside of 89.12%. Given Fervo Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Fervo Energy is more favorable than Sunrun.

Summary

Sunrun beats Fervo Energy on 7 of the 11 factors compared between the two stocks.

About Fervo Energy

Fervo Energy Company is a geothermal energy developer, builds, owns and operates geothermal power facilities. Fervo Energy Company is based in Houston, Texas.

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.