SolarBank (NASDAQ:SUUN – Get Free Report) and Xcel Energy (NASDAQ:XEL – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.
Institutional and Insider Ownership
78.4% of Xcel Energy shares are held by institutional investors. 0.1% of Xcel Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for SolarBank and Xcel Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SolarBank | 0 | 0 | 1 | 0 | 3.00 |
| Xcel Energy | 0 | 2 | 8 | 0 | 2.80 |
Profitability
This table compares SolarBank and Xcel Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SolarBank | -10.64% | -15.19% | -6.41% |
| Xcel Energy | 14.40% | 10.65% | 2.90% |
Valuation and Earnings
This table compares SolarBank and Xcel Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SolarBank | $52.15 million | 1.43 | -$2.56 million | ($0.22) | -10.45 |
| Xcel Energy | $13.44 billion | 3.01 | $1.94 billion | $3.44 | 20.39 |
Xcel Energy has higher revenue and earnings than SolarBank. SolarBank is trading at a lower price-to-earnings ratio than Xcel Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Xcel Energy beats SolarBank on 11 of the 13 factors compared between the two stocks.
About SolarBank
SolarBank Corporation operates as an independent renewable and clean energy project developer and asset operator in Canada and the United States. The company engages in the site origination, development, financing, engineering, procurement, construction, operation, maintenance, and asset management of solar photovoltaic power generation projects. It offers solar energy solutions in the areas of behind-the-meter solar power plants, electricity grid connected community solar gardens, and utility scale solar farms. The company was formerly known as Abundant Solar Energy Inc. and changed its name to SolarBank Corporation in October 2022. SolarBank Corporation was incorporated in 2013 and is headquartered in Toronto, Canada.
About Xcel Energy
Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.
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