Critical Analysis: Vivint Solar (VSLR) and 8point3 Energy Partners (CAFD)
Vivint Solar (NYSE: VSLR) and 8point3 Energy Partners (NASDAQ:CAFD) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Insider & Institutional Ownership
94.5% of Vivint Solar shares are held by institutional investors. Comparatively, 54.7% of 8point3 Energy Partners shares are held by institutional investors. 4.5% of Vivint Solar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Vivint Solar and 8point3 Energy Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vivint Solar||$209.14 million||2.60||-$60.84 million||$0.48||9.90|
|8point3 Energy Partners||N/A||N/A||N/A||N/A||N/A|
8point3 Energy Partners has higher revenue, but lower earnings than Vivint Solar.
Risk & Volatility
Vivint Solar has a beta of -0.25, meaning that its share price is 125% less volatile than the S&P 500. Comparatively, 8point3 Energy Partners has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.
8point3 Energy Partners pays an annual dividend of $1.06 per share and has a dividend yield of 7.4%. Vivint Solar does not pay a dividend.
This table compares Vivint Solar and 8point3 Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|8point3 Energy Partners||23.87%||1.94%||1.11%|
This is a breakdown of current recommendations and price targets for Vivint Solar and 8point3 Energy Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|8point3 Energy Partners||2||9||3||0||2.07|
Vivint Solar currently has a consensus price target of $5.40, suggesting a potential upside of 13.68%. 8point3 Energy Partners has a consensus price target of $15.54, suggesting a potential upside of 8.30%. Given Vivint Solar’s higher probable upside, equities research analysts clearly believe Vivint Solar is more favorable than 8point3 Energy Partners.
8point3 Energy Partners beats Vivint Solar on 6 of the 11 factors compared between the two stocks.
About Vivint Solar
Vivint Solar, Inc. offers distributed solar energy, electricity generated by a solar energy system installed at or near customers’ locations, to residential customers. Through investment funds, the Company owns solar energy systems it installs and provides solar electricity pursuant to long-term contracts with its customers. The Company also sells solar energy systems outright to customers. The Company deploys its direct-to-home sales force to provide in-person professional consultations to prospective customers to evaluate the feasibility of installing a solar energy system at their residence. The Company’s systems use communication gateways and monitoring services to collect performance data. The Company operates in Arizona, California, Connecticut, Florida, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, Texas and Utah. The Company purchases solar panels directly from multiple manufacturers.
About 8point3 Energy Partners
8point3 Energy Partners LP owns, operates and acquires solar energy generation projects. As of November 30, 2016, Company’s portfolio comprised interests in 642 Megawatt (MW) of solar energy projects. The Company is developing projects under utility, commercial and industrial (C&I) and residential categories. As of November 30, 2016, the Company owned interests in nine utility-scale solar energy projects; four C&I solar energy projects, and a portfolio of residential Distributed generation (DG) Solar assets. The Company’s utility project portfolio comprises projects, which include Maryland Solar, Solar Gen 2, Lost Hills Blackwell, North Star, RPU, Quinto, Hooper and Kingbird. The Company’s C&I projects comprise UC Davis, Macy’s California, Macy’s Maryland and Kern. The Company’s residential portfolio targets homeowners in the United States.
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