Analyzing FirstEnergy (NYSE:FE) and Spruce Power (NYSE:SPRU)

Spruce Power (NYSE:SPRU) and FirstEnergy (NYSE:FE) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Spruce Power and FirstEnergy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Power	0	0	0	0	0.00
FirstEnergy	1	8	5	0	2.29

FirstEnergy has a consensus price target of $45.17, indicating a potential upside of 8.11%. Given FirstEnergy’s stronger consensus rating and higher probable upside, analysts plainly believe FirstEnergy is more favorable than Spruce Power.

Risk & Volatility

Spruce Power has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, FirstEnergy has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Profitability

This table compares Spruce Power and FirstEnergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spruce Power	-121.98%	-23.98%	-5.48%
FirstEnergy	6.64%	11.38%	2.93%

Insider & Institutional Ownership

20.8% of Spruce Power shares are held by institutional investors. Comparatively, 89.4% of FirstEnergy shares are held by institutional investors. 9.6% of Spruce Power shares are held by insiders. Comparatively, 0.2% of FirstEnergy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Spruce Power and FirstEnergy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$82.11 million	0.44	-$65.83 million	($3.78)	-0.53
FirstEnergy	$13.47 billion	1.79	$1.10 billion	$1.70	24.58

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

Summary

FirstEnergy beats Spruce Power on 12 of the 14 factors compared between the two stocks.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.

About FirstEnergy

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 24,080 circuit miles of overhead and underground transmission lines; and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves approximately 6 million customers in Ohio, Pennsylvania, West Virginia, Maryland, New Jersey, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.