AGL Energy (OTCMKTS:AGLNF – Get Free Report) and Sunrun (NASDAQ:RUN – Get Free Report) are both utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Institutional and Insider Ownership
15.3% of AGL Energy shares are owned by institutional investors. Comparatively, 91.7% of Sunrun shares are owned by institutional investors. 3.5% of Sunrun shares are owned by 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.
Valuation and Earnings
This table compares AGL Energy and Sunrun”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AGL Energy | N/A | N/A | N/A | $1.02 | 5.83 |
| Sunrun | $2.96 billion | 0.72 | $449.95 million | $1.48 | 6.01 |
Sunrun has higher revenue and earnings than AGL Energy. AGL Energy is trading at a lower price-to-earnings ratio than Sunrun, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for AGL Energy and Sunrun, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AGL Energy | 0 | 0 | 1 | 0 | 3.00 |
| Sunrun | 2 | 8 | 12 | 0 | 2.45 |
Sunrun has a consensus target price of $16.81, suggesting a potential upside of 89.12%. Given Sunrun’s higher possible upside, analysts plainly believe Sunrun is more favorable than AGL Energy.
Profitability
This table compares AGL Energy and Sunrun’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AGL Energy | N/A | N/A | N/A |
| Sunrun | 11.59% | 9.59% | 1.77% |
Summary
Sunrun beats AGL Energy on 10 of the 11 factors compared between the two stocks.
About AGL Energy
AGL Energy Limited supplies energy and other essential services to residential, small and large businesses, and wholesale customers in Australia. It operates through three segments: Customer Markets, Integrated Energy, and Investments. The company engages in retailing of electricity, gas, broadband, mobile, voice, solar, and energy products and services; and operates power generation portfolio and other assets including coal, gas and renewable generation, natural gas storage and production, and development projects. It also offers renewable energy schemes; and controls dispatch of owned and contracted generation assets, gas offtake agreements, and associated portfolio of energy hedging products. In addition, the company offers coal and gas-fired generation; and renewable energy sources, such as wind, hydro and solar, batteries and other firming technology; and gas production and storage assets. AGL Energy Limited was founded in 1837 and is based in Sydney, Australia.
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.
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