Trina Solar Limited (NYSE: TSL) and Sunrun (NASDAQ:RUN) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Institutional & Insider Ownership
61.4% of Trina Solar Limited shares are owned by institutional investors. Comparatively, 71.4% of Sunrun shares are owned by institutional investors. 24.1% of Sunrun shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Volatility and Risk
Trina Solar Limited has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Sunrun has a beta of -0.69, indicating that its share price is 169% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Trina Solar Limited and Sunrun, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trina Solar Limited | 1 | 2 | 0 | 0 | 1.67 |
| Sunrun | 0 | 2 | 5 | 0 | 2.71 |
Trina Solar Limited currently has a consensus price target of $12.20, suggesting a potential upside of 5.72%. Sunrun has a consensus price target of $11.07, suggesting a potential upside of 59.07%. Given Sunrun’s stronger consensus rating and higher probable upside, analysts clearly believe Sunrun is more favorable than Trina Solar Limited.
Profitability
This table compares Trina Solar Limited and Sunrun’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trina Solar Limited | 3.48% | N/A | N/A |
| Sunrun | 17.65% | 8.76% | 2.44% |
Earnings and Valuation
This table compares Trina Solar Limited and Sunrun’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Trina Solar Limited | N/A | N/A | N/A | $1.43 | 8.07 |
| Sunrun | $474.58 million | 1.56 | -$59.81 million | $0.78 | 8.92 |
Trina Solar Limited has higher revenue, but lower earnings than Sunrun. Trina Solar Limited 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 Trina Solar Limited on 9 of the 11 factors compared between the two stocks.
About Trina Solar Limited
Trina Solar Limited is an integrated solar power products manufacturer and solar system developer based in China with a global distribution network. The Company has integrated the manufacturing of ingots, wafers and solar cells for use in its photovoltaic (PV) module production. Its PV modules provide electric power for residential, commercial, industrial and other applications. It also develops, designs, constructs, operates and sells solar power projects that primarily use the solar modules it manufactures. It operates through two segments: manufacturing segment and the solar power projects segment. The manufacturing segment designs, develops, manufactures and sells PV modules, and integrates the manufacturing of ingots, wafers and solar cells for use in its PV module production. The solar power projects segment designs, constructs, operates and sells solar power projects in China, the United Kingdom, the United States and other European and Asian countries.
About Sunrun
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.
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