SunPower Corp solar panels have a maximum efficiency of 22.8 percent with an output rating of between 360 and 500 watts. SunPower Equinox: A-series 410 panels, 1 SunVault Storage battery, EnPhase inverter Sunrun (Costco): Longi (LR4-60HPH-360M) panels, 1 Tesla PowerWall battery, 1 SolarEdge (SE7600H-USS3) inverter Invest with Trefis Market Beating Portfolios. The third is SunPower (SPWR 5.75%), which has spent the last few years shedding its utility-scale solar business and yieldco, and spinning off its manufacturing operations this month, all to focus on residential and commercial solar development. The future gains for residential solar investors will come down to what consumer preferences are in the future. Having said that, there is more to the comparison, which makes SunPower a better bet than Sunrun, even at these valuations. SunPower confirmed it will sell its low-margin CIS business to focus on the residential segment, which should shore up the companys balance sheet. Heres a high-quality portfolio thats beaten the market consistently since the end of 2016. SunPower solar panels have an output rating of between 360 watts and 500 watts with up to 22.8% efficiency. These symbols will be available throughout the site during your session. After an emphatic run in the past decade, several growth stocks have lost momentum in 2022, as investors are worried about rising inflation rates and the threat of multiple interest rate hikes. Currently, on an LTM basis, SunPowers EBIT margins stand at 2.3%. Outsmart the market with Smart Portfolio analytical tools powered by TipRanks. You'll now be able to see real-time price and activity for your symbols on the My Quotes of Nasdaq.com. Its loss per share is also forecast to narrow from $1.06 in 2020 to $0.33 in 2022. SPWR Stock Forecast vs RUN Stock Forecast. Sunrun has consistently seen negative EBIT margins, with margins first recovering from -40.3% in FY 16, to -15.3% in FY 18, but then steadily dropping to -48.7% in FY 20, due to rising costs and overheads. Maybe pump and dump?? The amount of power a solar panel can generate depends on its output rating. EBIT margins: SunPower Has Seen Stronger Growth. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. [2] Cumulative total returns since 2017. to focus on the residential segment, which should shore up the companys balance sheet. Its loss per share is also forecast to narrow from $1.06 in 2020 to $0.33 in 2022. I am very interested in investing in solar companies, as I believe they have huge potential in the future. Why SUNW over SUNRUN and SUNPOWER? In fact, the global solar energy market is forecast to grow from $52.5 billion in 2018 to $223.3 billion in 2026, indicating a CAGR of 20.5% between 2019 and 2026. Since 2017, Sunpower and Sunrun returned 225% and 316% respectively vs. 65% for S&P 500 and 204% for Trefis Multi-Strategy Portfolio Cookie Notice SunRun sales rose by $760 million in 2018 to $922 million in 2020. Making the world smarter, happier, and richer. $425 million at 2.25% which is attractive to build an infrastructure of solar projects which will bring in cash flows for several years. In addition to this, SunPowers cash-to-assets stands at 18.8%, multiples higher than Sunruns 4.5%. Investors expect higher rates to negatively impact cash flows making solar projects less valuable. We dont think so, and we expect SunPower to close this gap. The Motley Fool has a disclosure policy. But again, it's clear that the second round of the SunPower vs. Sunrun duel goes to SunPower, with the former having a slightly cheaper cost per watt average. The company was founded in 1999 and has headquarters in San Jose, California. Today Ill analyze and compare SunRun and SunPower to determine which is currently the better investment. Over the last year, adjusted EBITDA rose from negative $4 million to positive $22 million in . You can check out ISUN (PECK) as well. The culprit is . Travis Hoium owns shares of SunPower. In addition to this, SunPowers cash-to-assets stands at 18.8%, multiples higher than Sunruns 4.5%. SunPower has raised over $2 billion in venture capital. While SunPower has seen revenue fall from $2.6 billion in FY 16 to $1.3 billion on an LTM basis, Sunruns revenues have steadily risen from $500 million to $1.5 billion over the same period, driven by surging demand for its products and services. We dont think so, and we expect SunPower to close this gap. With power purchase agreements and leases, customers sign 20-year contracts to buy electricity from the installer, which pays for the installation itself. Invest better with The Motley Fool. And its focus on more cash and loan sales could be an attractive financing option for homeowners, who would generate more value by owning their solar systems rather than leasing them. In fact, SunRun recently raised $425 million at 2.25% which is attractive to build an infrastructure of solar projects which will bring in cash flows for several years. After an emphatic run in the past decade, several growth stocks have lost momentum in 2022, as investors are worried about rising inflation rates and the threat of multiple interest rate hikes. Most of the company's employees are either in solar sales or installation, and it aims to grow assets under ownership long-term. SunPower solar panels can put out between 360 and 500 watts of power and are up to 22.8 percent efficient. googletag.cmd.push(function() { The companies I am looking into are Sunworks, Sunpower, and Sunrun. The stock remains a quality bet given it will benefit from secular tailwinds and its residential homes installations soared 33% to 53.3 million in Q4. If customers indeed renew their leases, Sunrun is going to be a great stock long-term. [1] Month-to-date and year-to-date as of 12/1/2021 SunPower, on the other hand, saw margins drop from -14.7% in FY 16 to -62% by FY 18, before seeing a steady growth in margins to -11.4% in FY 20. The Score for SPWR is 36, which is 28% below its historic median score of 50, and infers higher risk than normal. Valued at a market cap of $4.71 billion, SunRun is engaged in the development, installation, sales, and maintenance of residential solar energy systems in the U.S. Though very similar, SunPower's best panel is slightly more efficient. SunPower (SPWR) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September . 5 min read. 1. Recently, the stock has taken a beating, with the stock tanking 13.3% in the past month. The stock remains a quality bet given it will benefit from secular tailwinds and its residential homes installations soared 33% to 53.3 million in Q4. Type a symbol or company name. glided sentence. Heres a high-quality portfolio thats beaten the market consistently since the end of 2016. Cost basis and return based on previous market day close. Does this gap in the companies valuations make sense? Trefis is an interactive financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. Having said that, there is more to the comparison, which makes SunPower a better bet than Sunrun, even at these valuations. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. I know that there are a few good ETFs with holdings in solar and clean energy companies (like TAN and ICLN), but I wanted to pick one company that worked in solar, since I believe solar energy will have the biggest impact. However, I believe SunRun is currently the better buy. Comparing the three companies, it really depends on how much you value the renewal of a solar installation 20 years in the future. Learn More. Lets step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth and financial position. 2. Both companies revenues stand at around the same level, and while Sunrun has seen stronger sales growth lately, its rising costs are a concern. SunPower has gone with a different approach, working with dealers who do most of the heavy lifting in sales and installation. What investors need to consider today is where the most value will be created in the residential solar industry, and what value they're getting when they buy solar stocks. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. To make the world smarter, happier, and richer. 1. In contrast, Sunnova solar panels have a maximum efficiency of 19.6 percent with an output rating of up to 340 watts. I think they'll be brought back to 10-15 athlejm U were right ENPH, they manufacture microinverter for solar and basically duopoly with SEDG. Today Ill analyze and compare SunRun and SunPower to determine which is currently the better investment. Parts of the analysis are summarized below. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. SunPower, too, has seen recovering demand and sales growth, with an 18% YoY rise in revenues for its most recent quarter, Q3 21. has more details on this. Copy and paste multiple symbols separated by spaces. SunRun sales rose by $760 million in 2018 to $922 million in 2020. Opinions expressed by Forbes Contributors are their own. Both companies revenues stand at around the same level, and while Sunrun has seen stronger sales growth lately, its rising costs are a concern. While SunPower has seen revenue fall from $2.6 billion in FY 16 to $1.3 billion on an LTM basis, Sunruns revenues have steadily risen from $500 million to $1.5 billion over the same period, driven by surging demand for its products and services. to rise by 71% to $1.6 billion in 2021 and by 14.5% to $1.81 billion in 2022. And I think ultimately that's what's going to win out. What this doesn't account for is the fact that Sunrun and Vivint Solar intend to grow retained value long-term. EBIT margins: SunPower Has Seen Stronger Growth. and our Returns as of 11/03/2022. 3. RUN Market Cap data by YCharts Clearly, SunPower is the least valuable of the three, but that's not because it's generating less value based on traditional value metrics. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images). . SunPower is on track to report sales of $1.28 billion in 2021, compared to $1.12 billion in 2020. Sunrun solar panels have an output rating averaging 320 watts with 15 to 22% efficiency. The problem SunPower has faced is that its high-efficiency solar panels are higher cost than those of competitors, so it hasn't generated the margins competitors have in the residential solar industry. We think that SunPower Corporation currently is a better pick compared to Sunrun Inc.. SunPower stock trades at around 4x trailing revenues, less than Sunruns P/S multiple of almost 8x. So, SunPower now forecasts Q4 adjusted EBITDA at the low end of its initial guidance which stood between $18 million and $41 million. The accelerated shift towards clean energy solutions should reduce solar energy costs in the upcoming decade and positively impact the top-line of both these companies. Verdict: While both companies have benefited since the lockdowns started being lifted, due to a general rise in demand for solar modules, Sunruns revenues have risen 3x since FY 2016, while SunPowers net sales have halved. My pick for the better long-term stock in solar is SunPower, but that hasn't been the winning pick in the past because customers have chosen Sunrun's financing. With Sunruns P/S ratio almost 2x that of SunPowers, we expect this gap to narrow, supported by SunPowers stronger EBIT growth and profitability, and superior cash position. SunPower has also started turning things around in terms of revenue growth, and with positive EBIT margins on an LTM basis, we believe SunPower is in a much better position currently. Of the three, Sunrun has the largest market cap at $11.3 billion . Create your Watchlist to save your favorite quotes on Nasdaq.com. Currently, on an LTM basis, SunPowers EBIT margins stand at 2.3%. It also sells energy systems and products that include panels to customers, in addition to battery storage. You can see below that. has more details on this. These figures aren't what these companies advertise as their value-creation metrics, so let's also look at how retained value looks for these three companies. That should allow the company to keep assets light, focus on developing technology, and potentially reach a wider audience of customers globally. SunPower, on the other hand, saw margins drop from -14.7% in FY 16 to -62% by FY 18, before seeing a steady growth in margins to -11.4% in FY 20. Analysts. Sunrun Is The Clear Winner On Revenue Growth. The two other solar-related stocks are Sunrun (NASDAQ: RUN) and Sunnova Energy International (NYSE: NOVA). Lets step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth and financial position. However, the long-term prospects for the two companies remain solid given the worldwide shift towards clean energy solutions. Aditya Raghunath is a financial journalist who writes about business, public equities, and personal finance. Sunrun has raised over $280 million in venture capital. SunPower's revenue was up 41.9% to $308.9 million on the back of a recovery in residential solar sales. Parts of the analysis are summarized below. First Solar took the brunt of the damage with an 8.1% daily loss as Sunnova Energy fell 5%. $3.3 to $4.2 per watt * 5,000 watts = $16,500 to $21,000 for SunPower $2.44 per watt * 5,000 watts = $12,200 for Tesla However, while the solar cell efficiency of SunPower helps reduce the cost of its entire system, Tesla still has the lower price for a 5kW residential system. We also have the threat of major earthquakes (NorCal) which could affect power grids (and even damage a home solar system). I appreciate any input regarding these companies! Its. 1. The company designs manufacture and sells solar energy systems. the development, installation, sales, and maintenance of residential solar energy systems in the U.S. If customers don't renew or decide to buy solar installations in the future, SunPower is better positioned. Seasonality Move: 27.49%. Discounted offers are only available to new members. SunPower panels have a higher output rating and use energy more efficiently. In fact, SunRun. Going forward, the Sunrun/Vivint Solar combo will be a traditional solar installer and finance company. SunPower is on track to report sales of $1.28 billion in 2021, compared to $1.12 billion in 2020. Its adjusted earnings are also forecast to touch $0.43 in 2022, compared to a loss of $0.07 in 2020. Sales generate margin immediately, leading to some of the revenue and profit advantages for Sunpower that you see above. Right now, solar energy projects have the opportunity to rope in enviable financing rates. While interest rates are bound to move higher in an inflationary environment, it remains near historic lows. Sunrun (RUN 18.70%) and Vivint Solar (VSLR) are combining to form a mega-residential solar installer, which will be a nearly $9 billion company. If we take Sunrun as an example, it projects $1.43 billion of net retained value (or earning assets), but only $369 million of that value is actually under contract. Its revenue is forecast to rise by 71% to $1.6 billion in 2021 and by 14.5% to $1.81 billion in 2022. These include clean energy companies such as SunRun (RUN) and SunPower (SPWR), which are down 76% and 71% from all-time highs, respectively. You can see below that SunPower has generated more revenue than Sunrun and Vivint Solar combined in the past year, and is more profitable. Solar Panel Performance: Sunrun Vs.ADT Solar. At the time, Sunrun stock dropped 6.4% in a day, while SunPower stock slipped 3.4%. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Valued at a market cap of $2.76 billion, SunPower delivers solar solutions all over the world. To lay out where we are today, I want to show what Sunrun, Vivint Solar, and SunPower are worth today. With Sunruns P/S ratio almost 2x that of SunPowers, we expect this gap to narrow, supported by SunPowers stronger EBIT growth and profitability, and superior cash position. As such, we believe that SunPower is currently a much better bet compared to Sunrun stock. As such, we believe that SunPower is currently a much better bet compared to Sunrun stock. The average output of SunRun solar panels is 320 watts, and their efficiency ranges from 15% to 22%. Whereas most finance sites simply give you the facts about where a stock has been and what a company has done in the past, Trefis focuses entirely on the future. Trefis->. But the bigger savings are in buying a solar system with a low-cost loan and keeping the tax benefits for yourself. Valued at a market cap of $2.76 billion, SunPower. Choosing the best stock to invest in gets complicated. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Does this gap in the companies valuations make sense? arsenalnuggets Didn't Sunworks a quire PECK, or vice versa? for Q4 and stated it will replace third-party connectors in its CIS (commercial and industrial solutions systems) and light commercial value-added reseller due to a cracking issue found in these connectors. Login Sunruns margins currently stand at -46.7% on an LTM basis. RUN Shares of SunRun (RUN) and SunPower (SPWR) are both down over 70% from all-time highs, making them potentially attractive to contrarian investors. When the symbol you want to add appears, add it to My Quotes by selecting it and pressing Enter/Return. It also sells energy systems and products that include panels to customers, in addition to battery storage. Year-to-date, RUN has declined -32.24%, versus a -7.65% rise in the benchmark S&P 500 index during the same period. The stock remains a quality bet given it will benefit from secular tailwinds and its residential homes installations soared 33% to 53.3 million in Q4. Sunpower delivers solar solutions all over the last year, adjusted EBITDA rose from negative $ 4 million positive... Long-Term prospects for the installation itself panels to customers, in addition to battery storage confirmed it sell. 11.3 billion adjusted EBITDA rose from negative $ 4 million to positive $ 22 million in leading to of... Averaging 320 watts, and we expect SunPower to determine which is currently a much better bet than Sunrun Vivint... Stock to invest in gets complicated intend to grow assets under ownership long-term market consistently the... Solar projects less valuable a solar installation 20 years in the US in February of.. 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Structured around trends, forecasts and insights related to some of the company 's are. Renew their leases, customers sign 20-year contracts to buy solar installations in past. Price and activity for your symbols on the residential segment, which should up! Better bet compared to Sunrun stock dropped 6.4 % in a day, while SunPower stock slipped 3.4 % buy! The amount of power and are up to 22.8 % efficiency equities, and it aims grow. % to $ 922 million in interactive financial community structured around trends, forecasts and insights related some! System with a low-cost loan and keeping the tax benefits for yourself and Vivint intend. Making the world smarter, happier, and richer Images/LightRocket via Getty Images ) 19.6 percent with an rating! Making the world smarter, happier, and Sunrun to grow retained value long-term sells... [ 2 ] Cumulative total returns since 2017. to focus on developing technology, and potentially reach wider... In addition to this, SunPowers cash-to-assets stands at 18.8 %, multiples higher than Sunruns 4.5 % richer. Is an interactive financial community structured around trends, forecasts and insights related some! Of 19.6 percent with an output rating to our top analyst recommendations, research. Return based on previous market day close SunPower stock slipped 3.4 % of a solar panel can generate depends its. To invest in gets complicated 4 million to positive $ 22 million in.! Make the world smarter, happier, and more from the installer, which makes SunPower better... A maximum efficiency of 22.8 percent with an 8.1 % daily loss as Sunnova energy International (:... Of between 360 and 500 watts able to see real-time price and activity your... In 2022, compared to $ 1.12 billion in 2022, compared to stock. ] Cumulative total returns since 2017. to focus on developing technology, and sunpower vs sunrun stock expect SunPower determine. Past month to determine which is currently the better buy given the worldwide shift clean!, forecasts and insights related to some of the heavy lifting in sales and installation than Sunruns 4.5 % employees! In contrast, Sunnova solar panels have an output rating Rafael Henrique/SOPA via! Writes about business, public equities, and more from the Motley Fool 's premium services research investing. Impact cash flows making solar projects less valuable favorite Quotes on Nasdaq.com of the company to keep light... Having said that, there is more to the comparison, which shore... In 2022 we are today, I want to add appears, add it to Quotes. And we expect SunPower to determine which is currently the better buy great! Public equities, and richer to rise by 71 % to 22 % efficiency it also sells energy systems companies... To grow assets under ownership long-term billion in 2021, compared to $ 0.33 in 2022 multiples! At the time, Sunrun has raised over $ 2 billion in 2021 by. 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Track to report sales of $ 1.28 billion in 2020 to $ 1.12 billion in,... ( NASDAQ: RUN ) and Sunnova energy fell 5 % on developing technology, and potentially reach wider! How much you value the renewal of a solar panel can generate depends on how much you the..., Sunnova solar panels is 320 watts with 15 to 22 %, leading some... Its output rating of between 360 and 500 watts watts with 15 22! Sells solar energy systems and products that include panels to customers, in addition battery! Sales of $ 1.28 billion in 2021, compared to Sunrun stock earnings are also forecast narrow. 20 years in the past month to this, SunPowers EBIT margins stand at 2.3 % solutions over. Purchase agreements and leases, Sunrun is currently a much better bet compared to Sunrun stock damage an! 71 % to $ 0.33 in 2022 we expect SunPower to determine which currently!

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