Head to Head Review: Real Goods Solar (OTCMKTS:RGSEQ) and CSLM Acquisition (NASDAQ:SPWR)

Real Goods Solar (OTCMKTS:RGSEQ) and CSLM Acquisition (NASDAQ:SPWR) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Real Goods Solar and CSLM Acquisition, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Goods Solar	0	0	0	0	0.00
CSLM Acquisition	0	2	1	1	2.75

CSLM Acquisition has a consensus price target of $5.40, indicating a potential upside of 233.33%. Given CSLM Acquisition’s stronger consensus rating and higher probable upside, analysts clearly believe CSLM Acquisition is more favorable than Real Goods Solar.

Insider & Institutional Ownership

47.4% of CSLM Acquisition shares are owned by institutional investors. 0.9% of Real Goods Solar shares are owned by insiders. Comparatively, 44.6% of CSLM Acquisition shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Real Goods Solar and CSLM Acquisition”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Goods Solar	N/A	N/A	N/A	N/A	N/A
CSLM Acquisition	$108.74 million	1.60	-$56.45 million	($0.47)	-3.45

Real Goods Solar has higher earnings, but lower revenue than CSLM Acquisition.

Profitability

This table compares Real Goods Solar and CSLM Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Goods Solar	N/A	N/A	N/A
CSLM Acquisition	5.11%	-16.64%	10.18%

Summary

CSLM Acquisition beats Real Goods Solar on 9 of the 10 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. provides solar energy systems to homeowners, and commercial building owners. It offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction activities. The firm operates through three segments: Solar Division, POWERHOUSE and Other. The Solar Division segment engages the installation of solar energy systems for homeowners, including lease financing thereof, and small business commercial. The POWERHOUSE segment engages in the manufacturing and sales of solar shingles. The Other segment engages in corporate operations. The Other segment consists of corporate operations. The company was founded in 1978 and is headquartered in Denver, CO.

About CSLM Acquisition

Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.