Comparing CSLM Acquisition (NASDAQ:SPWR) & Sunrun (NASDAQ:RUN)

Sunrun (NASDAQ:RUN) and CSLM Acquisition (NASDAQ:SPWR) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Insider and Institutional Ownership

91.7% of Sunrun shares are held by institutional investors. Comparatively, 47.4% of CSLM Acquisition shares are held by institutional investors. 3.4% of Sunrun shares are held by company insiders. Comparatively, 44.6% of CSLM Acquisition shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Sunrun has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500. Comparatively, CSLM Acquisition has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sunrun and CSLM Acquisition”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrun	$2.04 billion	1.02	-$2.85 billion	($12.13)	-0.75
CSLM Acquisition	$108.74 million	1.39	-$56.45 million	N/A	N/A

CSLM Acquisition has lower revenue, but higher earnings than Sunrun.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sunrun and CSLM Acquisition, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrun	4	10	10	0	2.25
CSLM Acquisition	0	1	1	0	2.50

Sunrun presently has a consensus target price of $13.26, indicating a potential upside of 46.46%. CSLM Acquisition has a consensus target price of $6.00, indicating a potential upside of 218.30%. Given CSLM Acquisition’s stronger consensus rating and higher possible upside, analysts plainly believe CSLM Acquisition is more favorable than Sunrun.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sunrun	-129.97%	9.42%	2.22%
CSLM Acquisition	-21.35%	-8.47%	8.23%

Summary

CSLM Acquisition beats Sunrun on 7 of the 12 factors compared between the two stocks.

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.

About CSLM Acquisition

Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.