FTC Solar (NASDAQ:FTCI – Get Free Report) and Sunrun (NASDAQ:RUN – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Analyst Ratings
This is a breakdown of recent recommendations for FTC Solar and Sunrun, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| FTC Solar | 1 | 3 | 3 | 0 | 2.29 |
| Sunrun | 1 | 8 | 14 | 1 | 2.63 |
FTC Solar currently has a consensus price target of $9.20, suggesting a potential downside of 22.95%. Sunrun has a consensus price target of $19.58, suggesting a potential downside of 4.34%. Given Sunrun’s stronger consensus rating and higher possible upside, analysts plainly believe Sunrun is more favorable than FTC Solar.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| FTC Solar | $47.35 million | 3.77 | -$48.61 million | ($4.33) | -2.76 |
| Sunrun | $2.04 billion | 2.33 | -$2.85 billion | ($11.18) | -1.83 |
FTC Solar has higher earnings, but lower revenue than Sunrun. FTC Solar is trading at a lower price-to-earnings ratio than Sunrun, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares FTC Solar and Sunrun’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| FTC Solar | -69.25% | -549.96% | -44.59% |
| Sunrun | -106.50% | 19.34% | 3.38% |
Risk and Volatility
FTC Solar has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Sunrun has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500.
Institutional and Insider Ownership
45.4% of FTC Solar shares are held by institutional investors. Comparatively, 91.7% of Sunrun shares are held by institutional investors. 21.0% of FTC 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 is poised for long-term growth.
Summary
Sunrun beats FTC Solar on 10 of the 15 factors compared between the two stocks.
About FTC Solar
FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.
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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