Critical Analysis: SiTime (NASDAQ:SITM) & Spruce Power (NYSE:SPRU)

SiTime (NASDAQ:SITM) and Spruce Power (NYSE:SPRU) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.

Earnings and Valuation

This table compares SiTime and Spruce Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiTime	$326.66 million	56.99	-$42.90 million	($1.01)	-698.22
Spruce Power	$111.81 million	0.44	-$26.03 million	($0.76)	-3.59

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

Risk & Volatility

SiTime has a beta of 2.94, suggesting that its stock price is 194% more volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for SiTime and Spruce Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiTime	1	0	8	1	2.90
Spruce Power	1	0	0	0	1.00

SiTime currently has a consensus price target of $661.88, suggesting a potential downside of 6.14%. Given SiTime’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SiTime is more favorable than Spruce Power.

Institutional and Insider Ownership

84.3% of SiTime shares are held by institutional investors. Comparatively, 20.8% of Spruce Power shares are held by institutional investors. 1.4% of SiTime shares are held by company insiders. Comparatively, 12.7% of Spruce Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SiTime	-6.38%	0.53%	0.47%
Spruce Power	-12.22%	-10.95%	-1.60%

Summary

SiTime beats Spruce Power on 11 of the 15 factors compared between the two stocks.

About SiTime

SiTime Corporation designs, develops, and sells silicon timing systems solutions in Taiwan, Hong Kong, the United States, Singapore, and internationally. The company provides resonators and clock integrated circuits, and various types of oscillators. It serves various markets, including communications, datacenter, enterprise, automotive, industrial, internet of things, mobile, consumer, and aerospace and defense. The company sells its products directly to customers, distributors, and resellers. SiTime Corporation was incorporated in 2003 and is based in Santa Clara, California.

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.