Analyzing Real Goods Solar (OTCMKTS:RGSEQ) & Sunrun (NASDAQ:RUN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Real Goods Solar	N/A	N/A	N/A
Sunrun	-120.59%	14.19%	2.90%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Real Goods Solar and Sunrun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Goods Solar	0	0	0	0	0.00
Sunrun	2	9	13	2	2.58

Sunrun has a consensus target price of $15.77, indicating a potential downside of 16.10%. Given Real Goods Solar’s higher possible upside, equities research analysts plainly believe Real Goods Solar is more favorable than Sunrun.

Institutional & Insider Ownership

91.7% of Sunrun shares are held by institutional investors. 0.9% of Real Goods Solar shares are held by company insiders. Comparatively, 3.4% of Sunrun shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Real Goods Solar and Sunrun”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Goods Solar	N/A	N/A	N/A	N/A	N/A
Sunrun	$2.04 billion	2.13	-$2.85 billion	($11.61)	-1.62

Real Goods Solar has higher earnings, but lower revenue than Sunrun.

Summary

Sunrun beats Real Goods Solar on 8 of the 10 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. provides solar energy systems to homeowners, and commercial building owners. It offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction activities. The firm operates through three segments: Solar Division, POWERHOUSE and Other. The Solar Division segment engages the installation of solar energy systems for homeowners, including lease financing thereof, and small business commercial. The POWERHOUSE segment engages in the manufacturing and sales of solar shingles. The Other segment engages in corporate operations. The Other segment consists of corporate operations. The company was founded in 1978 and is headquartered in Denver, CO.

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.