Reviewing SunPower (NASDAQ:SPWRW) & First Solar (NASDAQ:FSLR)

SunPower (NASDAQ:SPWRW) and First Solar (NASDAQ:FSLR) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Profitability

This table compares SunPower and First Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunPower	N/A	N/A	N/A
First Solar	30.73%	18.01%	12.57%

Institutional and Insider Ownership

92.1% of First Solar shares are held by institutional investors. 0.4% of First Solar shares are held by 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 & Valuation

This table compares SunPower and First Solar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunPower	$294.38 million	N/A	N/A	N/A	N/A
First Solar	$5.22 billion	4.86	$1.53 billion	$15.48	15.24

First Solar has higher revenue and earnings than SunPower.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for SunPower and First Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunPower	0	0	0	0	0.00
First Solar	2	12	18	1	2.55

First Solar has a consensus target price of $249.78, suggesting a potential upside of 5.86%. Given First Solar’s stronger consensus rating and higher possible upside, analysts clearly believe First Solar is more favorable than SunPower.

Summary

First Solar beats SunPower on 10 of the 10 factors compared between the two stocks.

About SunPower

Complete Solaria, Inc. provides solar technology and installation services. It offers solar panel designing and installation services, as well as develops a solar digital platform for homeowners and installers. The company also provide financing for solar panels. Complete Solaria, Inc. is based in Fremont, California.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.