Head-To-Head Contrast: SunPower (SPWR) and Its Peers

SunPower (NASDAQ: SPWR) is one of 11 publicly-traded companies in the “Photovoltaic Solar Systems & Equipment” industry, but how does it weigh in compared to its peers? We will compare SunPower to related companies based on the strength of its analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Risk & Volatility

SunPower has a beta of 3.1, indicating that its stock price is 210% more volatile than the S&P 500. Comparatively, SunPower’s peers have a beta of 1.46, indicating that their average stock price is 46% more volatile than the S&P 500.

Profitability

This table compares SunPower and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunPower -24.91% -20.81% -4.40%
SunPower Competitors -11.98% -119.78% -2.29%

Valuation and Earnings

This table compares SunPower and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
SunPower $2.56 billion -$471.06 million -2.02
SunPower Competitors $1.32 billion -$58.64 million 1.00

SunPower has higher revenue, but lower earnings than its peers. SunPower is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

27.9% of SunPower shares are held by institutional investors. Comparatively, 40.3% of shares of all “Photovoltaic Solar Systems & Equipment” companies are held by institutional investors. 0.9% of SunPower shares are held by company insiders. Comparatively, 16.2% of shares of all “Photovoltaic Solar Systems & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for SunPower and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunPower 1 8 3 0 2.17
SunPower Competitors 175 582 854 56 2.47

SunPower currently has a consensus price target of $8.91, indicating a potential upside of 9.77%. As a group, “Photovoltaic Solar Systems & Equipment” companies have a potential downside of 9.76%. Given SunPower’s higher possible upside, research analysts plainly believe SunPower is more favorable than its peers.

Summary

SunPower peers beat SunPower on 8 of the 12 factors compared.

SunPower Company Profile

SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation. The Company offers solar module technology and solar power systems that are designed to generate electricity over a system life over 25 years; Integrated Smart Energy software solutions that enable customers to manage and optimize the cooperation center of excellence (CCOE) measurement; Installation, construction, and ongoing maintenance and monitoring services; and financing solutions that provide customers a range of options for purchasing or leasing solar products at competitive energy rates. The Company offers a set of residential solutions that deliver value to homeowners and its dealer partners.

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