Financial Comparison: Solar Integrated Roofing (OTCMKTS:SIRC) versus FTC Solar (NASDAQ:FTCI)

Solar Integrated Roofing (OTCMKTS:SIRC) and FTC Solar (NASDAQ:FTCI) are both small-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Solar Integrated Roofing and FTC Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solar Integrated Roofing	0	0	0	0	0.00
FTC Solar	2	2	1	0	1.80

FTC Solar has a consensus target price of $4.25, indicating a potential downside of 45.30%. Given Solar Integrated Roofing’s higher probable upside, equities analysts clearly believe Solar Integrated Roofing is more favorable than FTC Solar.

Insider and Institutional Ownership

45.4% of FTC Solar shares are owned by institutional investors. 4.3% of Solar Integrated Roofing shares are owned by company insiders. Comparatively, 21.0% of FTC Solar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Solar Integrated Roofing and FTC Solar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solar Integrated Roofing	$37.31 million	0.00	-$27.40 million	($0.03)	N/A
FTC Solar	$47.35 million	2.44	-$48.61 million	($3.92)	-1.98

Solar Integrated Roofing has higher earnings, but lower revenue than FTC Solar. FTC Solar is trading at a lower price-to-earnings ratio than Solar Integrated Roofing, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Solar Integrated Roofing has a beta of -0.66, meaning that its stock price is 166% less volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Profitability

This table compares Solar Integrated Roofing and FTC Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solar Integrated Roofing	N/A	N/A	N/A
FTC Solar	-73.04%	-262.78%	-55.79%

About Solar Integrated Roofing

Solar Integrated Roofing Corp. provides integrated, single-source solar power and roofing systems installation services for commercial and residential properties in the United States. It offers battery backup, electric vehicle charging, roofing, and related HVAC/electrical contracting works; and sells solar panels. The company was formerly known as Landstar Development Group, Inc. and changed its name to Solar Integrated Roofing Corp. in November 2015. Solar Integrated Roofing Corp. was incorporated in 2007 and is based in Henderson, Nevada.

About FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.