Contrasting Hoku (OTCMKTS:HOKUQ) and Stem (NYSE:STEM)

Hoku (OTCMKTS:HOKUQGet Rating) and Stem (NYSE:STEMGet Rating) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, profitability, institutional ownership, valuation and risk.

Analyst Ratings

This is a breakdown of current recommendations for Hoku and Stem, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hoku 0 0 0 0 N/A
Stem 0 1 6 0 2.86

Stem has a consensus target price of $28.00, indicating a potential upside of 290.52%. Given Stem’s higher probable upside, analysts clearly believe Stem is more favorable than Hoku.

Valuation & Earnings

This table compares Hoku and Stem’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hoku N/A N/A N/A N/A N/A
Stem $127.37 million 8.64 -$101.21 million ($8.11) -0.88

Hoku has higher earnings, but lower revenue than Stem.

Profitability

This table compares Hoku and Stem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hoku N/A N/A N/A
Stem -79.46% 12.33% 6.02%

Risk and Volatility

Hoku has a beta of -13.51, indicating that its share price is 1,451% less volatile than the S&P 500. Comparatively, Stem has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Institutional & Insider Ownership

50.3% of Stem shares are held by institutional investors. 2.2% of Hoku shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Stem beats Hoku on 7 of the 9 factors compared between the two stocks.

Hoku Company Profile (Get Rating)

Hoku Corporation operates as a solar energy products and services company primarily in the United States. It focuses on manufacturing polysilicon, a primary material used in the manufacture of photovoltaic (PV) modules; and designing, engineering, and installing turnkey PV systems and related services in Hawaii using solar modules purchased from third-party suppliers. The company was formerly known as Hoku Scientific, Inc. and changed its name to Hoku Corporation in March 2010. Hoku Corporation was incorporated in 2001 and is headquartered in Honolulu, Hawaii. On July 2, 2013, Hoku Corporation along with its affiliates filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Idaho.

Stem Company Profile (Get Rating)

Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. It offers energy storage systems sourced from original equipment manufacturers (OEMs). The company also provides Athena, an artificial intelligence platform, which offers battery hardware and software-enabled services to operate the energy storage systems. In addition, it offers system design and engineering services, supply chain management, energy storage value stream optimization, warranty and preventive maintenance plan management, operation and maintenance reporting, and program enrollment and incentive management services. The company serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. Stem, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

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