Critical Analysis: SunPower Corporation (SPWR) & Its Rivals

SunPower Corporation (NASDAQ: SPWR) is one of 11 publicly-traded companies in the “Photovoltaic Solar Systems & Equipment” industry, but how does it compare to its competitors? We will compare SunPower Corporation to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current ratings for SunPower Corporation and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunPower Corporation 1 8 3 0 2.17
SunPower Corporation Competitors 175 582 855 57 2.48

SunPower Corporation presently has a consensus target price of $8.91, indicating a potential upside of 11.70%. As a group, “Photovoltaic Solar Systems & Equipment” companies have a potential downside of 12.02%. Given SunPower Corporation’s higher probable upside, research analysts plainly believe SunPower Corporation is more favorable than its competitors.

Valuation & Earnings

This table compares SunPower Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
SunPower Corporation $2.56 billion -$471.06 million -1.99
SunPower Corporation Competitors $1.32 billion -$58.64 million 1.21

SunPower Corporation has higher revenue, but lower earnings than its competitors. SunPower Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

SunPower Corporation has a beta of 3.1, suggesting that its stock price is 210% more volatile than the S&P 500. Comparatively, SunPower Corporation’s competitors have a beta of 1.46, suggesting that their average stock price is 46% more volatile than the S&P 500.

Insider and Institutional Ownership

28.4% of SunPower Corporation shares are owned by institutional investors. Comparatively, 40.0% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by institutional investors. 0.9% of SunPower Corporation shares are owned by company insiders. Comparatively, 16.0% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares SunPower Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunPower Corporation -24.91% -20.81% -4.40%
SunPower Corporation Competitors -11.98% -119.78% -2.29%

Summary

SunPower Corporation competitors beat SunPower Corporation on 8 of the 12 factors compared.

About SunPower Corporation

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.

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