Contrasting Sunrun (NASDAQ:RUN) and Shoals Technologies Group (NASDAQ:SHLS)

Sunrun (NASDAQ:RUN) and Shoals Technologies Group (NASDAQ:SHLS) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Valuation and Earnings

This table compares Sunrun and Shoals Technologies Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunrun	$2.04 billion	1.85	-$2.85 billion	($11.61)	-1.40
Shoals Technologies Group	$399.21 million	3.17	$24.13 million	$0.13	58.08

Shoals Technologies Group has lower revenue, but higher earnings than Sunrun. Sunrun is trading at a lower price-to-earnings ratio than Shoals Technologies Group, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Sunrun has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500. Comparatively, Shoals Technologies Group has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Profitability

This table compares Sunrun and Shoals Technologies Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunrun	-120.59%	14.19%	2.90%
Shoals Technologies Group	5.27%	7.57%	5.32%

Analyst Recommendations

This is a breakdown of recent recommendations for Sunrun and Shoals Technologies Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunrun	1	9	12	2	2.63
Shoals Technologies Group	2	6	13	0	2.52

Sunrun currently has a consensus price target of $14.81, suggesting a potential downside of 9.15%. Shoals Technologies Group has a consensus price target of $9.20, suggesting a potential upside of 21.85%. Given Shoals Technologies Group’s higher possible upside, analysts clearly believe Shoals Technologies Group is more favorable than Sunrun.

Institutional and Insider Ownership

91.7% of Sunrun shares are owned by institutional investors. 3.4% of Sunrun shares are owned by insiders. Comparatively, 1.7% of Shoals Technologies Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Shoals Technologies Group beats Sunrun on 8 of the 15 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 Shoals Technologies Group

Shoals Technologies Group, Inc. provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle (EV) charging applications in the United States and internationally. The company designs, manufactures, and sells system solutions for both homerun and combine-as-you-go wiring architectures, as well as offers technical support services. It provides EBOS components, including combiners; plug-n-play branch connectors and inline fuses; AC disconnects; recombiners; wireless monitoring; junction boxes; wire management; EV power cabinets; and battery energy storage systems cabinets, as well as cable assemblies, transition enclosures, and splice boxes. In addition, the company offers eMobility solutions, such as a power center, which combines equipment needed to protect the charging equipment and transform voltage levels from the electric utility to those needed on the respective site; quick connect solutions for chargers to connect to the Shoals system; big lead assembly (BLA) technology in the EV space to connect multiple chargers to a single power center; and a raceway system that protects the above ground EV BLAs in walk over and drive over applications. Further, it provides Snapshot IV, a solar operations and maintenance solution that monitors the specific voltage and current of individual solar panels and compares the results against the manufacturer's projected performance. The company sells its products to engineering, procurement, and construction firms that build solar energy projects; utilities; solar developers, independent power producers; solar module manufacturers; and charge point operators. Shoals Technologies Group, Inc. was founded in 1996 and is headquartered in Portland, Tennessee.