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

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

Profitability

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

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

Insider & Institutional Ownership

91.7% of Sunrun shares are owned by institutional investors. 4.3% of Solar Integrated Roofing shares are owned by company insiders. Comparatively, 3.4% of Sunrun shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

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

Valuation & Earnings

This table compares Solar Integrated Roofing and Sunrun”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solar Integrated Roofing	$37.31 million	0.00	-$27.40 million	($0.03)	N/A
Sunrun	$2.04 billion	1.98	-$2.85 billion	($11.18)	-1.55

Solar Integrated Roofing has higher earnings, but lower revenue 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solar Integrated Roofing	0	0	0	0	0.00
Sunrun	1	8	14	1	2.63

Sunrun has a consensus price target of $19.70, suggesting a potential upside of 13.50%. Given Sunrun’s stronger consensus rating and higher possible upside, analysts clearly believe Sunrun is more favorable than Solar Integrated Roofing.

Summary

Sunrun beats Solar Integrated Roofing on 9 of the 13 factors compared between the two stocks.

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.

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.