SunPower (NASDAQ: SPWRA) and Canadian Solar (NASDAQ:CSIQ) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitabiliy, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares SunPower and Canadian Solar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunPower -38.26% -58.77% -13.77%
Canadian Solar 1.04% 7.12% 1.24%

Earnings and Valuation

This table compares SunPower and Canadian Solar’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunPower N/A N/A N/A N/A N/A
Canadian Solar $2.81 billion 0.29 $112.21 million $0.49 28.55

Canadian Solar has higher revenue and earnings than SunPower.

Analyst Recommendations

This is a breakdown of recent recommendations for SunPower and Canadian Solar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunPower 0 1 0 0 2.00
Canadian Solar 2 6 3 0 2.09

SunPower presently has a consensus price target of $37.00, suggesting a potential upside of 407.54%. Canadian Solar has a consensus price target of $16.58, suggesting a potential upside of 18.51%. Given SunPower’s higher possible upside, equities analysts clearly believe SunPower is more favorable than Canadian Solar.

Institutional & Insider Ownership

37.0% of Canadian Solar shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Canadian Solar beats SunPower on 7 of the 8 factors compared between the two stocks.

About SunPower

SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation. The Company offers solar module technology and solar power systems that are designed to generate electricity over a system life over 25 years; Integrated Smart Energy software solutions that enable customers to manage and optimize the cooperation center of excellence (CCOE) measurement; Installation, construction, and ongoing maintenance and monitoring services; and financing solutions that provide customers a range of options for purchasing or leasing solar products at competitive energy rates. The Company offers a set of residential solutions that deliver value to homeowners and its dealer partners.

About Canadian Solar

Canadian Solar Inc. is a solar power company. The Company is a provider of solar power products, services and system solutions with operations in North America, South America, Europe, Africa, the Middle East, Australia and Asia. Its segments include module segment, energy development segment and electricity generation segment. It designs, develops and manufactures solar wafers, solar cells and solar power products. The module segment primarily involves the design, development, manufacturing and sale of a range of solar power products, including standard solar modules and specialty solar products, and solar system kits. Its energy development segment consists of solar power project development, engineering, procurement and construction services, and operation and maintenance services. Its electricity generation segment consists of holding solar power projects for the purpose of generating income from the sale of electricity to the local or national grid or other power purchasers.

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