Analyzing Sunrun (NASDAQ:RUN) and Neoen (OTCMKTS:NOSPF)

Neoen (OTCMKTS:NOSPF) and Sunrun (NASDAQ:RUN) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for Neoen and Sunrun, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Neoen	0	0	0	0	0.00
Sunrun	2	8	12	0	2.45

Sunrun has a consensus price target of $17.04, indicating a potential upside of 67.01%. Given Sunrun’s stronger consensus rating and higher probable upside, analysts clearly believe Sunrun is more favorable than Neoen.

Profitability

This table compares Neoen and Sunrun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Neoen	N/A	N/A	N/A
Sunrun	11.59%	9.59%	1.77%

Institutional and Insider Ownership

91.7% of Sunrun shares are owned by institutional investors. 3.5% of Sunrun shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Neoen and Sunrun”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Neoen	N/A	N/A	N/A	$41.46	1.01
Sunrun	$2.96 billion	0.82	$449.95 million	$2.13	4.79

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

Summary

Sunrun beats Neoen on 10 of the 11 factors compared between the two stocks.

About Neoen

Neoen S.A., an independent renewable energy production company, engages in the development and operation of renewable energy power plants. The company operates through Solar Power, Wind Power, Storage, Farm-Down, Development and Investments, and Eliminations segments. It operates in Argentina, Australia, Canada, Ecuador, the United States, Finland, France, Ireland, Italy, Jamaica, Mexico, Mozambique, Portugal, El Salvador, Sweden, and Zambia. Neoen S.A. was incorporated in 2008 and is headquartered in Paris, France.

About Sunrun

Sunrun Inc. designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.