Reviewing EnerSys (NYSE:ENS) & Sunrun (NASDAQ:RUN)

EnerSys (NYSE:ENSGet Rating) and Sunrun (NASDAQ:RUNGet Rating) are both mid-cap industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for EnerSys and Sunrun, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EnerSys 0 0 2 0 3.00
Sunrun 0 0 17 0 3.00

EnerSys currently has a consensus target price of $107.50, suggesting a potential upside of 54.50%. Sunrun has a consensus target price of $62.87, suggesting a potential upside of 152.88%. Given Sunrun’s higher possible upside, analysts clearly believe Sunrun is more favorable than EnerSys.

Profitability

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

Net Margins Return on Equity Return on Assets
EnerSys 4.58% 12.75% 5.62%
Sunrun -4.93% -0.70% -0.31%

Volatility and Risk

EnerSys has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Sunrun has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500.

Institutional and Insider Ownership

92.5% of EnerSys shares are held by institutional investors. Comparatively, 98.0% of Sunrun shares are held by institutional investors. 1.4% of EnerSys shares are held by company insiders. Comparatively, 4.4% of Sunrun shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares EnerSys and Sunrun’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EnerSys $2.98 billion 0.96 $143.37 million $3.46 20.11
Sunrun $1.61 billion 3.22 -$79.42 million ($0.40) -62.15

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

Summary

EnerSys beats Sunrun on 7 of the 13 factors compared between the two stocks.

About EnerSys (Get Rating)

EnerSys engages in the provision of stored energy solutions for industrial applications. The company operates through the following segments: Energy Systems, Motive Power, and Specialty. The Energy Systems segment, which combine enclosures, power conversion, power distribution, and energy storage are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and other applications requiring stored energy solutions. The Motive Power segment engages in the batteries and chargers that are utilized in electric forklift trucks and other industrial electric powered vehicles. The Specialty segment, which are used in aerospace and defense applications, large over-the-road trucks, automotive, medical, and security systems applications. It also provides battery chargers, power equipment, battery accessories, and outdoor equipment enclosure solutions; and aftermarket and customer support services. EnerSys was founded in October 2000 and is headquartered in Reading, Pennsylvania.

About Sunrun (Get Rating)

Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of 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. 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.

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