Travis Hoium owns shares of SunPower. Pros and Cons of SunPower Nationwide availability Produces solar panels, batteries, and electric vehicle chargers in-house 25-year all-inclusive warranty covers the full system and components Limited to SunPower products only Its solar panels are more expensive than other companies Rating: Most Energy-Efficient 4.5/5 Get Free Quote Currently, on an LTM basis, SunPowers EBIT margins stand at 2.3%. 2. What if youre looking for a more balanced portfolio instead? sunrun vs sunpower vs tesla Right now, solar energy projects have the opportunity to rope in enviable financing rates. After an emphatic run in the past decade, several growth stocks have lost momentum in 2022, as investors are worried about rising inflation rates and the threat of multiple interest rate hikes. The culprit is . Our dashboard SunPower vs Sunrun: Industry Peers; Which Stock Is A Better Bet? SunPower has gone with a different approach, working with dealers who do most of the heavy lifting in sales and installation. My pick for the better long-term stock in solar is SunPower, but that hasn't been the winning pick in the past because customers have chosen Sunrun's financing. Do Not Sell My Personal Information (CA Residents Only). [2] Cumulative total returns since 2017. Currently, on an LTM basis, SunPowers EBIT margins stand at 2.3%. Lets step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth and financial position. Solar Panel Performance: Sunrun Vs.ADT Solar. Sunrun Vs . You can see below that Sunrun and Vivint Solar hold far more retained value than SunPower, which holds its residential solar projects in a joint venture with Hannon Armstrong, which it owns 51% of. SunRun vs. SunPower: Which Solar Stock Is a Better Buy? the global solar energy market is forecast to grow. Sunruns margins currently stand at -46.7% on an LTM basis. SunPower solar panels can put out between 360 and 500 watts of power and are up to 22.8 percent efficient. Parts of the analysis are summarized below. While interest rates are bound to move higher in an inflationary environment, it remains near historic lows. Sunrun Is The Clear Winner On Revenue Growth While SunPower has seen revenue fall from $2.6 billion in FY '16 to $1.3 billion on an LTM basis, Sunrun's revenues have steadily risen from $500. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. RUN shares were trading at $23.24 per share on Monday morning, up $0.47 (+2.06%). 2. SunPower, on the other hand, saw margins drop from -14.7% in FY 16 to -62% by FY 18, before seeing a steady growth in margins to -11.4% in FY 20. The amount of power a solar panel can generate depends on its output rating. Valued at a market cap of $4.71 billion, SunRun. SunPower, on the other hand, saw margins drop from -14.7% in FY 16 to -62% by FY 18, before seeing a steady growth in margins to -11.4% in FY 20. To lay out where we are today, I want to show what Sunrun, Vivint Solar, and SunPower are worth today. Does Sunrun or SunPower have higher quality solar panels? (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images). Sunrun ( NASDAQ: RUN) Sunrun is a provider of residential solar panels and home batteries in America. SunPower confirmed it will sell its low-margin CIS business. Heres a high-quality portfolio thats beaten the market consistently since the end of 2016. Trefis is an interactive financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. SunPower Is Also In A Better Net Cash Position. At the time, Sunrun stock dropped 6.4% in a day, while SunPower stock slipped 3.4%. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. What if youre looking for a more balanced portfolio instead? Thanks. To see all exchange delays and terms of use, please see disclaimer. Despite the pullback, SunRun and SunPower have returned 276% and 245% to investors in the last five years, compared to the S&P 500 gains of 106%. Last Price: 24.38. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. I know that there are a few good ETFs with holdings in solar and clean energy companies (like TAN and ICLN), but I wanted to pick one company that worked in solar, since I believe solar energy will have the biggest impact. The companies I am looking into are Sunworks, Sunpower, and Sunrun. For more information, please see our Sunrun installs inverters and microinverters from Enphase and Tesla Powerwalls from Tesla Solar, and its panel selection includes LONGi and Costco. Copy and paste multiple symbols separated by spaces. Its loss per share is also forecast to narrow from $1.06 in 2020 to $0.33 in 2022. 1. In addition to this, SunPowers cash-to-assets stands at 18.8%, multiples higher than Sunruns 4.5%. These include clean energy companies such as SunRun (. Right now, I am leaning towards Sunworks as their price is cheaper compared to Sunpower and Sunrun, and I like the way they are growing as a company as they have yet to reach the Midwest and Atlantic states. However, I believe SunRun is currently the better buy. Clean Energy Solar Stocks Sunrun, SunPower Scorch On Good News - Forbes We dont think so, and we expect SunPower to close this gap. That should allow the company to keep assets light, focus on developing technology, and potentially reach a wider audience of customers globally. Sales generate margin immediately, leading to some of the revenue and profit advantages for Sunpower that you see above. $3.3 to $4.2 per watt * 5,000 watts = $16,500 to $21,000 for SunPower $2.44 per watt * 5,000 watts = $12,200 for Tesla However, while the solar cell efficiency of SunPower helps reduce the cost of its entire system, Tesla still has the lower price for a 5kW residential system. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. In fact, SunRun. Cookie Notice However, the long-term prospects for the two companies remain solid given the worldwide shift towards clean energy solutions. Its. While both companies have benefited since the lockdowns started being lifted, due to a general rise in demand for solar modules, Sunruns revenues have risen 3x since FY 2016, while SunPowers net sales have halved. The stock remains a quality bet given it will benefit from secular tailwinds and its residential homes installations soared 33% to 53.3 million in Q4. The Motley Fool has no position in any of the stocks mentioned. His work has been published on several digital platforms in the U.S. and Canada, including The Motley Fool, Finscreener, and Market Realist. Even . Since 2017, Sunpower and Sunrun returned 225% and 316% respectively vs. 65% for S&P 500 and 204% for Trefis Multi-Strategy Portfolio Learn More. SunPower (SPWR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September . As such, we believe that SunPower is currently a much better bet compared to Sunrun stock. Year-to-date, RUN has declined -32.24%, versus a -7.65% rise in the benchmark S&P 500 index during the same period. Analysts. Sunrun has raised over $280 million in venture capital. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2022, Nasdaq, Inc. All Rights Reserved. SUNW is way overvalued now I think. We dont think so, and we expect SunPower to close this gap. Discounted offers are only available to new members. Login [1] Month-to-date and year-to-date as of 12/1/2021 Its adjusted earnings are also forecast to touch $0.43 in 2022, compared to a loss of $0.07 in 2020. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Returns as of 11/03/2022. SunPower Industry Stock Comparison. Its loss per share is also forecast to narrow from $1.06 in 2020 to $0.33 in 2022. I think they'll be brought back to 10-15 athlejm U were right ENPH, they manufacture microinverter for solar and basically duopoly with SEDG. SunPower Is Also In A Better Net Cash Position. Lets step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth and financial position. BRAZIL - 2021/03/19: In this photo illustration, the SunPower Corporation logo seen displayed on a smartphone screen. googletag.display('js-dfp-tag-SmM'); However, the bulk of the drop in SunPowers sales came before FY 19, and revenues on an LTM basis stand at $1.3 billion, up from $1.1 billion in FY 19. EBIT margins: SunPower Has Seen Stronger Growth. Recently, the stock has taken a beating, with the stock tanking 13.3% in the past month. Sunrun (RUN 18.70%) and Vivint Solar (VSLR) are combining to form a mega-residential solar installer, which will be a nearly $9 billion company. Over the last year, adjusted EBITDA rose from negative $4 million to positive $22 million in . So, SunPower now forecasts Q4 adjusted EBITDA at the low end of its initial guidance which stood between $18 million and $41 million. Valued at a market cap of $2.76 billion, SunPower delivers solar solutions all over the world. Making the world smarter, happier, and richer. Opinions expressed by Forbes Contributors are their own. SunPower (Maxeon Solar) Vs. Sunrun: Full Review - EcoWut Which is the best solar company: SunRun, SunPower, or SunWorks - reddit Verdict: Sunrun solar panels have an output rating averaging 320 watts with 15 to 22% efficiency. sunrun battery vs powerwall These figures aren't what these companies advertise as their value-creation metrics, so let's also look at how retained value looks for these three companies. Copyright 2022. The problem SunPower has faced is that its high-efficiency solar panels are higher cost than those of competitors, so it hasn't generated the margins competitors have in the residential solar industry. The Score for SPWR is 36, which is 28% below its historic median score of 50, and infers higher risk than normal. Cost basis and return based on previous market day close. Sunrun Is The Clear Winner On Revenue Growth. RUN Market Cap data by YCharts Clearly, SunPower is the least valuable of the three, but that's not because it's generating less value based on traditional value metrics. Does this gap in the companies valuations make sense? SunPower vs Sunrun? Going to pull the trigger in the next day or two If customers don't renew or decide to buy solar installations in the future, SunPower is better positioned. The future gains for residential solar investors will come down to what consumer preferences are in the future. RUN Shares of SunRun (RUN) and SunPower (SPWR) are both down over 70% from all-time highs, making them potentially attractive to contrarian investors. Retained value is the present value of all cash flows from residential solar projects. While SunPower has seen revenue fall from $2.6 billion in FY 16 to $1.3 billion on an LTM basis, Sunruns revenues have steadily risen from $500 million to $1.5 billion over the same period, driven by surging demand for its products and services. ET, Hannon Armstrong Sustainable Infrastructure Capital, SunPower Jumps 15.5% Today on Strong Earnings, Why SunPower and Other Alternative Energy Stocks Dropped This Week, Why Investors Went Dark on Solar Stocks Today, Sunny Days Could Be Ahead for This Residential Solar Energy Stock, Cumulative Growth of a $10,000 Investment in Stock Advisor, 2 Top Growth Stocks I'd Buy Right Now Without Any Hesitation, 1 Remarkable Growth Stock Down 80% to Buy Hand Over Fist in November, Nasdaq Bear Market: 4 Screaming Bargains That Can Double Your Money by 2026, 1 Super Semiconductor Stock to Buy Hand Over Fist, Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Of the three, Sunrun has the largest market cap at $11.3 billion . The Motley Fool has a disclosure policy. But the two companies should continue to outpace the equity markets going forward. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. SunPower (Maxeon Solar) is a subsidiary of SunPower Corporation. Both SunPower ($4.15) and Sunrun's ($4.91) costs per watt are well over the $2.66 average. But again, it's clear that the second round of the SunPower vs. Sunrun duel goes to SunPower, with the former having a slightly cheaper cost per watt average. The accelerated shift towards clean energy solutions should reduce solar energy costs in the upcoming decade and positively impact the top-line of both these companies. SunPower Stock Looks Like A Smart Bet In The Solar Space - Forbes Type a symbol or company name. . Parts of the analysis are summarized below. The company reported its preliminary results for Q4 and stated it will replace third-party connectors in its CIS (commercial and industrial solutions systems) and light commercial value-added reseller due to a cracking issue found in these connectors. SunPower Equinox: A-series 410 panels, 1 SunVault Storage battery, EnPhase inverter Sunrun (Costco): Longi (LR4-60HPH-360M) panels, 1 Tesla PowerWall battery, 1 SolarEdge (SE7600H-USS3) inverter These two metrics don't show the retained value any of these companies have from solar installations they own, but they're still useful metrics. I am very interested in investing in solar companies, as I believe they have huge potential in the future. has more details on this. Both companies revenues stand at around the same level, and while Sunrun has seen stronger sales growth lately, its rising costs are a concern. The company was founded in 1999 and has headquarters in San Jose, California. SunPower's revenue was up 41.9% to $308.9 million on the back of a recovery in residential solar sales. to focus on the residential segment, which should shore up the companys balance sheet. First Solar vs. Sunrun: Which Renewable Energy Stock Will Shine? There are essentially three big residential solar companies investors can invest in right now, and that's about to go down to two. Type a symbol or company name. SunPower is on track to report sales of $1.28 billion in 2021, compared to $1.12 billion in 2020. 5 min read. SunPower Corp solar panels have a maximum efficiency of 22.8 percent with an output rating of between 360 and 500 watts. The third is SunPower (SPWR 5.75%), which has spent the last few years shedding its utility-scale solar business and yieldco, and spinning off its manufacturing operations this month, all to focus on residential and commercial solar development. With power purchase agreements and leases, customers sign 20-year contracts to buy electricity from the installer, which pays for the installation itself. Reddit and its partners use cookies and similar technologies to provide you with a better experience. from $52.5 billion in 2018 to $223.3 billion in 2026, indicating a CAGR of 20.5% between 2019 and 2026. What this doesn't account for is the fact that Sunrun and Vivint Solar intend to grow retained value long-term. Create your Watchlist to save your favorite quotes on Nasdaq.com. SunPower has also started turning things around in terms of revenue growth, and with positive EBIT margins on an LTM basis, we believe SunPower is in a much better position currently. Which Company is Right For You? googletag.cmd.push(function() { Stock Advisor list price is $199 per year. Our dashboard SunPower vs Sunrun: Industry Peers; Which Stock Is A Better Bet? Today Ill analyze and compare SunRun and SunPower to determine which is currently the better investment. What You Need to Know About SunPower's Latest Results SunPower has raised over $2 billion in venture capital. Its adjusted earnings are also forecast to touch $0.43 in 2022, compared to a loss of $0.07 in 2020. I appreciate any input regarding these companies! Today Ill analyze and compare SunRun and SunPower to determine which is currently the better investment. Its adjusted earnings are also forecast to touch $0.43 in 2022, compared to a loss of $0.07 in 2020. SunPower has also started turning things around in terms of revenue growth, and with positive EBIT margins on an LTM basis, we believe SunPower is in a much better position currently. Sunruns margins currently stand at -46.7% on an LTM basis. SunRun sales rose by $760 million in 2018 to $922 million in 2020. The replacements will cost SunPower $31 million in Q4 of 2021 and Q1 of 2022. SunPower Stock Looks Like A Smart Bet In The Solar Space The calculation usually includes an estimate of the value of renewal, which may or may not happen and often accounts for a large percentage of total calculated value. Does this gap in the companies valuations make sense? SunPowers debt-to-equity ratio currently stands at 2.1%, half that of Sunruns current debt-to-equity ratio that stands at 4.2%. 1. SunPower panels have a higher output rating and use energy more efficiently. Though very similar, SunPower's best panel is slightly more efficient. With Sunruns P/S ratio almost 2x that of SunPowers, we expect this gap to narrow, supported by SunPowers stronger EBIT growth and profitability, and superior cash position. Sell 36 SPWR SunPower. glided sentence. Trefis Team for SPWR Stock Forecast vs RUN Stock Forecast. Sell 50 RUN Sunrun . Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. However, the bulk of the drop in SunPowers sales came before FY 19, and revenues on an LTM basis stand at $1.3 billion, up from $1.1 billion in FY 19. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Calculated by Time-Weighted Return since 2002. Clearly, SunPower is the least valuable of the three, but that's not because it's generating less value based on traditional value metrics. Why SUNW over SUNRUN and SUNPOWER? Most of the company's employees are either in solar sales or installation, and it aims to grow assets under ownership long-term. SunPower confirmed it will sell its low-margin CIS business to focus on the residential segment, which should shore up the companys balance sheet. First Solar took the brunt of the damage with an 8.1% daily loss as Sunnova Energy fell 5%. Having said that, there is more to the comparison, which makes SunPower a better bet than Sunrun, even at these valuations. Keep in mind that this is before the merger of Sunrun and Vivint Solar, which is an all-stock deal, and SunPower's spinoff of Maxeon Solar Technologies, its manufacturing arm. Analysts expect SunPower's revenue to touch $1.62 billion in 2021. And I think ultimately that's what's going to win out. While interest rates are bound to move higher in an inflationary environment, it remains near historic lows. to rise by 71% to $1.6 billion in 2021 and by 14.5% to $1.81 billion in 2022. arsenalnuggets Didn't Sunworks a quire PECK, or vice versa? Going forward, the Sunrun/Vivint Solar combo will be a traditional solar installer and finance company. It also sells energy systems and products that include panels to customers, in addition to battery storage. We also have the threat of major earthquakes (NorCal) which could affect power grids (and even damage a home solar system). SunRun sales rose by $760 million in 2018 to $922 million in 2020. Overall, customers like SunPower better. Investors expect higher rates to negatively impact cash flows making solar projects less valuable. You can see below that SunPower has generated more revenue than Sunrun and Vivint Solar combined in the past year, and is more profitable. SunPower, on the other hand, finances only about one-third of its solar installations, and sells the rest through loans or cash sales. In contrast, Sunnova solar panels have a maximum efficiency of 19.6 percent with an output rating of up to 340 watts. the development, installation, sales, and maintenance of residential solar energy systems in the U.S. Having said that, there is more to the comparison, which makes SunPower a better bet than Sunrun, even at these valuations. SunPower solar panels have an output rating of between 360 watts and 500 watts with up to 22.8% efficiency. SunPower stock trades at around 4x trailing revenues, less than Sunruns P/S multiple of almost 8x. With Sunruns P/S ratio almost 2x that of SunPowers, we expect this gap to narrow, supported by SunPowers stronger EBIT growth and profitability, and superior cash position. Parts of the analysis are summarized below. Right now, solar energy projects have the opportunity to rope in enviable financing rates. 10 Best Solar Companies (2022 Guide) - This Old House Invest with Trefis Market Beating Portfolios. Valued at a market cap of $4.71 billion, SunRun is engaged in the development, installation, sales, and maintenance of residential solar energy systems in the U.S. After an emphatic run in the past decade, several growth stocks have lost momentum in 2022, as investors are worried about rising inflation rates and the threat of multiple interest rate hikes. These panels are considered tier-one, although they aren't quite as efficient or reliable as options from SunPower, LG, or Panasonic, for example.. Market-beating stocks from our award-winning analyst team. If customers indeed renew their leases, Sunrun is going to be a great stock long-term. Should SunPower Be in Your Portfolio of Sun Stocks? Maybe pump and dump?? If consumers choose third-party financing from installers and long-term contracts, it'll favor Sunrun in a big way. Its value will be determined by its ability to lower costs, increase revenue per customer, and lower financing costs. Sunrun Is The Clear Winner On Revenue Growth. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Price as of November 3, 2022, 4:00 p.m. These symbols will be available throughout the site during your session. and our Analysts expect SunPowers revenue to touch $1.62 billion in 2021. Which solar company do you guys think will have the biggest potential in the future? The stock remains a quality bet given it will benefit from secular tailwinds and its residential homes installations soared 33% to 53.3 million in Q4. When the symbol you want to add appears, add it to Watchlist by selecting it and pressing Enter/Return. Seasonality Move: 27.49%. Aditya Raghunath is a financial journalist who writes about business, public equities, and personal finance. Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. Privacy Policy. Written by Theoretically, SunPower could have more upside than either Sunrun or Vivint Solar, but that hasn't played out for investors long-term, and it needs to start showing that cash and loan sales of solar can be profitable. SunPower (SPWR) Earnings Expected to Grow: Should You Buy? SunPower Vs. Sunrun: Which should you choose? - Climatebiz Both companies revenues stand at around the same level, and while Sunrun has seen stronger sales growth lately, its rising costs are a concern. Leading solar stocks Enphase Energy ( ENPH 0.45%), Sunrun ( RUN -3.63%) and SunPower ( SPWR -1.57%) fell hard on Monday, closing the session down 5.5%, 8.2%, and 7.4%, respectively. And its focus on more cash and loan sales could be an attractive financing option for homeowners, who would generate more value by owning their solar systems rather than leasing them. Is Sunrun or SunPower Right About the Future of Residential Solar? for Q4 and stated it will replace third-party connectors in its CIS (commercial and industrial solutions systems) and light commercial value-added reseller due to a cracking issue found in these connectors. If we take Sunrun as an example, it projects $1.43 billion of net retained value (or earning assets), but only $369 million of that value is actually under contract. Compare Sunrun vs. SunPower | TopSolarCompanies Valued at a market cap of $2.76 billion, SunPower. 1. Its revenue is forecast to rise by 71% to $1.6 billion in 2021 and by 14.5% to $1.81 billion in 2022. We think that SunPower Corporation (NASDAQ:SPWR)currently is a better pick compared toSunrun Inc. (NASDAQ:RUN). has more details on this. Join. SunPower is one of them. SunPower is on track to report sales of $1.28 billion in 2021, compared to $1.12 billion in 2020. You can check out ISUN (PECK) as well. $425 million at 2.25% which is attractive to build an infrastructure of solar projects which will bring in cash flows for several years. ), which are down 76% and 71% from all-time highs, respectively. The current SunPower share price is $15.65. Invest better with The Motley Fool. Sunrun Is The Clear Winner On Revenue Growth While SunPower has seen revenue fall from $2.6 billion in FY '16 to $1.3 billion on an LTM basis,.
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