Comparing Q.E.P. (QEPC) & Sunrun (RUN)

Q.E.P. (OTCMKTS:QEPC) and Sunrun (NASDAQ:RUN) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

6.1% of Q.E.P. shares are owned by institutional investors. Comparatively, 75.5% of Sunrun shares are owned by institutional investors. 51.1% of Q.E.P. shares are owned by insiders. Comparatively, 19.5% of Sunrun shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Q.E.P. has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Sunrun has a beta of -0.59, meaning that its share price is 159% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Q.E.P. and Sunrun, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Q.E.P. 0 0 0 0 N/A
Sunrun 0 2 7 0 2.78

Sunrun has a consensus price target of $14.94, suggesting a potential upside of 1.66%. Given Sunrun’s higher possible upside, analysts plainly believe Sunrun is more favorable than Q.E.P..

Earnings and Valuation

This table compares Q.E.P. and Sunrun’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Q.E.P. $322.39 million 0.28 $7.94 million N/A N/A
Sunrun $529.70 million 3.10 $124.52 million $0.86 17.09

Sunrun has higher revenue and earnings than Q.E.P..

Profitability

This table compares Q.E.P. and Sunrun’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Q.E.P. 1.56% 0.97% 0.53%
Sunrun 13.72% 4.78% 1.41%

Summary

Sunrun beats Q.E.P. on 9 of the 12 factors compared between the two stocks.

About Q.E.P.

Q.E.P. Co., Inc. manufactures, markets, and distributes a range of hardwood and laminate flooring, flooring installation tools, adhesives, and flooring related products for the professional installation and do-it-yourself markets. It operates in three segments: North America, Europe, and Australia/New Zealand. The company also provides industrial tools to the industrial trades. Its product portfolio includes tile saws, blades, and accessories; tile cutters and accessories; hand tools; tile spacers; scrapers; trowels and floats; mixers and paddles; drill bits, hole saws, and jigsaw blades; clean-up, repair, and maintenance products; knee pads and safety tools; installation kits; underlayment products; cement boards and masonry tools; and Brutus products. The company markets its products under the QEP, ROBERTS, HarrisWood, Fausfloor, Capitol, Nupla, HISCO, Ludell, Porta-Nails, Elastiment, Vitrex, Homelux, Tilerite, PRCI, Plasplugs, Tomecanic, and Benetiere brands. Q.E.P. Co., Inc. sells its products to home improvement retail centers, specialty distribution outlets, municipalities, and industrial solution providers. The company was founded in 1979 and is based in Boca Raton, Florida.

About Sunrun

Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar leads. The company markets and sells its products through direct channels, partner channels, mass media, digital media, canvassing, referral, retail, and field marketing. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.

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