XPLR Infrastructure (NYSE:XIFR) versus Spruce Power (NYSE:SPRU) Financial Analysis

XPLR Infrastructure (NYSE:XIFR) and Spruce Power (NYSE:SPRU) are both small-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Volatility & Risk

XPLR Infrastructure has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Valuation and Earnings

This table compares XPLR Infrastructure and Spruce Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPLR Infrastructure	$1.19 billion	0.79	-$28.00 million	$0.65	15.32
Spruce Power	$108.49 million	0.24	-$26.03 million	($0.45)	-2.96

Spruce Power has lower revenue, but higher earnings than XPLR Infrastructure. Spruce Power is trading at a lower price-to-earnings ratio than XPLR Infrastructure, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for XPLR Infrastructure and Spruce Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPLR Infrastructure	2	3	2	1	2.25
Spruce Power	1	0	0	0	1.00

XPLR Infrastructure presently has a consensus target price of $12.33, suggesting a potential upside of 23.89%. Given XPLR Infrastructure’s stronger consensus rating and higher possible upside, equities research analysts plainly believe XPLR Infrastructure is more favorable than Spruce Power.

Profitability

This table compares XPLR Infrastructure and Spruce Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPLR Infrastructure	5.24%	0.61%	0.34%
Spruce Power	-6.76%	-5.94%	-0.87%

Insider and Institutional Ownership

66.0% of XPLR Infrastructure shares are held by institutional investors. Comparatively, 20.8% of Spruce Power shares are held by institutional investors. 0.4% of XPLR Infrastructure shares are held by insiders. Comparatively, 11.2% of Spruce Power shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

XPLR Infrastructure beats Spruce Power on 12 of the 15 factors compared between the two stocks.

About XPLR Infrastructure

XPLR Infrastructure LP engages in the acquisition, management, and ownership of contracted clean energy projects with long-term cash flows. It owns interests in wind and solar projects in North America and natural gas infrastructure assets in Texas. The company was founded on March 6, 2014 and is headquartered in Juno Beach, FL.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.