Sunrun (NASDAQ:RUN) & Principal Solar (OTCMKTS:PSWW) Critical Analysis

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

Volatility and Risk

Sunrun has a beta of 2.43, indicating that its stock price is 143% more volatile than the S&P 500. Comparatively, Principal Solar has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunrun	15.22%	11.72%	2.08%
Principal Solar	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Sunrun and Principal Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrun	1	9	12	1	2.57
Principal Solar	0	0	0	0	0.00

Sunrun currently has a consensus target price of $19.58, suggesting a potential upside of 55.41%. Given Sunrun’s stronger consensus rating and higher probable upside, research analysts clearly believe Sunrun is more favorable than Principal Solar.

Earnings & Valuation

This table compares Sunrun and Principal Solar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrun	$2.96 billion	1.00	$449.95 million	$1.71	7.37
Principal Solar	N/A	N/A	-$400,000.00	N/A	N/A

Sunrun has higher revenue and earnings than Principal Solar.

Insider and Institutional Ownership

91.7% of Sunrun shares are owned by institutional investors. 3.4% of Sunrun shares are owned by company insiders. Comparatively, 39.2% of Principal Solar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Sunrun beats Principal Solar on 11 of the 12 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 Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.