Contrasting Vivint Solar (VSLR) & Its Rivals

Vivint Solar (NYSE: VSLR) is one of 56 publicly-traded companies in the “ENERGY-ALT SRCS” industry, but how does it contrast to its peers? We will compare Vivint Solar to related companies based on the strength of its risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Volatility and Risk

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Vivint Solar has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500. Comparatively, Vivint Solar’s peers have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Vivint Solar 78.01% -24.76% -7.60%
Vivint Solar Competitors -181.47% -61.67% -10.68%

Earnings & Valuation

This table compares Vivint Solar and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vivint Solar $268.03 million $209.09 million 2.11
Vivint Solar Competitors $871.19 million $11.39 million 2.16

Vivint Solar’s peers have higher revenue, but lower earnings than Vivint Solar. Vivint Solar 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vivint Solar and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vivint Solar 0 3 2 0 2.40
Vivint Solar Competitors 418 1102 1369 80 2.37

Vivint Solar currently has a consensus target price of $5.40, suggesting a potential upside of 45.95%. As a group, “ENERGY-ALT SRCS” companies have a potential upside of 14.86%. Given Vivint Solar’s stronger consensus rating and higher probable upside, equities analysts clearly believe Vivint Solar is more favorable than its peers.

Institutional & Insider Ownership

92.8% of Vivint Solar shares are held by institutional investors. Comparatively, 42.7% of shares of all “ENERGY-ALT SRCS” companies are held by institutional investors. 4.5% of Vivint Solar shares are held by company insiders. Comparatively, 11.3% of shares of all “ENERGY-ALT SRCS” companies are held 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

Vivint Solar beats its peers on 7 of the 13 factors compared.

About Vivint Solar

Vivint Solar, Inc. offers distributed solar energy, electricity generated by a solar energy system installed at or near customers’ locations, to residential customers. Through investment funds, the Company owns solar energy systems it installs and provides solar electricity pursuant to long-term contracts with its customers. The Company also sells solar energy systems outright to customers. The Company deploys its direct-to-home sales force to provide in-person professional consultations to prospective customers to evaluate the feasibility of installing a solar energy system at their residence. The Company’s systems use communication gateways and monitoring services to collect performance data. The Company operates in Arizona, California, Connecticut, Florida, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, Texas and Utah. The Company purchases solar panels directly from multiple manufacturers.

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