SolarBank (NASDAQ:SUUN) versus Ameren (NYSE:AEE) Financial Comparison

SolarBank (NASDAQ:SUUN) and Ameren (NYSE:AEE) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

79.1% of Ameren shares are held by institutional investors. 0.4% of Ameren shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares SolarBank and Ameren’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%
Ameren	15.51%	10.34%	2.86%

Valuation and Earnings

This table compares SolarBank and Ameren”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarBank	$52.15 million	1.33	-$2.56 million	($0.22)	-9.77
Ameren	$7.62 billion	3.49	$1.18 billion	$4.42	22.31

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for SolarBank and Ameren, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarBank	0	0	1	0	3.00
Ameren	0	3	6	1	2.80

SolarBank currently has a consensus price target of $6.00, suggesting a potential upside of 179.07%. Ameren has a consensus price target of $99.22, suggesting a potential upside of 0.64%. Given SolarBank’s stronger consensus rating and higher probable upside, equities analysts plainly believe SolarBank is more favorable than Ameren.

Summary

Ameren beats SolarBank on 12 of the 14 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 Ameren

Ameren Corporation, together with its subsidiaries, operates as a public utility holding company in the United States. The company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission. It engages in the rate-regulated electric generation, transmission, and distribution activities; and rate-regulated natural gas distribution business. In addition, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar. It serves residential, commercial, and industrial customers. The company was founded in 1881 and is headquartered in Saint Louis, Missouri.