Sunrun (NASDAQ: RUN) and Hanwha Q CELLS Co. (NASDAQ:HQCL) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

This table compares Sunrun and Hanwha Q CELLS Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunrun 17.65% 8.76% 2.44%
Hanwha Q CELLS Co. 2.30% 11.55% 2.26%

Analyst Ratings

This is a breakdown of current ratings for Sunrun and Hanwha Q CELLS Co., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunrun 0 2 4 0 2.67
Hanwha Q CELLS Co. 1 1 0 0 1.50

Sunrun presently has a consensus price target of $10.80, suggesting a potential upside of 60.71%. Hanwha Q CELLS Co. has a consensus price target of $7.00, suggesting a potential downside of 8.50%. Given Sunrun’s stronger consensus rating and higher possible upside, analysts plainly believe Sunrun is more favorable than Hanwha Q CELLS Co..

Institutional and Insider Ownership

73.6% of Sunrun shares are held by institutional investors. Comparatively, 0.7% of Hanwha Q CELLS Co. shares are held by institutional investors. 24.1% of Sunrun shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Sunrun has a beta of -0.64, meaning that its share price is 164% less volatile than the S&P 500. Comparatively, Hanwha Q CELLS Co. has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500.

Valuation & Earnings

This table compares Sunrun and Hanwha Q CELLS Co.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sunrun $474.58 million 1.50 -$59.81 million $0.78 8.62
Hanwha Q CELLS Co. $2.28 billion 0.28 $200.30 million $0.62 12.34

Hanwha Q CELLS Co. has higher revenue and earnings than Sunrun. Sunrun is trading at a lower price-to-earnings ratio than Hanwha Q CELLS Co., indicating that it is currently the more affordable of the two stocks.

Summary

Sunrun beats Hanwha Q CELLS Co. on 9 of the 14 factors compared between the two stocks.

Sunrun Company Profile

Sunrun Inc. is engaged in the design, development, installation, sale, ownership and maintenance of residential solar energy systems (Projects) in the United States. The Company is engaged in providing solar energy services and products to its customers. As of December 31, 2016, it operated a fleet of residential solar energy systems in the United States, with approximately 134,000 customers across 16 states, as well as the District of Columbia. The Company sells to homeowners over the phone, in the field through canvassing and in-home sales and through retail sales channels through its strategic partners. The solar service offerings are provided through its lease and power purchase agreements. It sells solar service offerings and installs solar energy systems for homeowners through its direct-to-consumer channel. It sells solar energy systems to homeowners, as well as related products, such as solar panels, inverters, racking systems and other solar-related equipment to resellers.

Hanwha Q CELLS Co. Company Profile

Hanwha Q CELLS Co., Ltd., formerly Hanwha SolarOne Co., Ltd., is a global solar energy company engaged in the manufacturing of solar modules, and the development and management of downstream solar farms. It manufactures a range of photo voltaic (PV) cells and PV modules at its manufacturing facilities in China and Malaysia using manufacturing process technologies, including those developed at its research and development facilities in Germany. It also engages in PV downstream businesses, which include developing solar power projects and providing engineering, procurement and construction services, and operation and management services. It develops and builds solar power projects incorporating its PV modules to sells them to third-party purchasers upon completion. Its principal products include PV modules, PV cells, silicon ingots and silicon wafers. It sells a range of PV modules, ranging from 250 watts to 340 watts in power output specification.

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