Vivint Solar (NYSE: VSLR) is one of 56 publicly-traded companies in the “ENERGY-ALT SRCS” industry, but how does it compare to its rivals? We will compare Vivint Solar to similar businesses based on the strength of its risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.

Insider & Institutional Ownership

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92.8% of Vivint Solar shares are owned by institutional investors. Comparatively, 42.7% of shares of all “ENERGY-ALT SRCS” companies are owned by institutional investors. 4.5% of Vivint Solar shares are owned by insiders. Comparatively, 11.3% of shares of all “ENERGY-ALT SRCS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Vivint Solar and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vivint Solar 0 3 2 0 2.40
Vivint Solar Competitors 419 1102 1370 80 2.37

Vivint Solar presently has a consensus target price of $5.40, indicating a potential upside of 40.26%. As a group, “ENERGY-ALT SRCS” companies have a potential upside of 14.09%. Given Vivint Solar’s stronger consensus rating and higher probable upside, analysts clearly believe Vivint Solar is more favorable than its rivals.

Risk & Volatility

Vivint Solar has a beta of -0.3, suggesting that its share price is 130% less volatile than the S&P 500. Comparatively, Vivint Solar’s rivals have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vivint Solar and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vivint Solar $268.03 million $209.09 million 2.20
Vivint Solar Competitors $882.48 million $11.39 million 1.31

Vivint Solar’s rivals have higher revenue, but lower earnings than Vivint Solar. Vivint Solar is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Vivint Solar and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vivint Solar 78.01% -24.76% -7.60%
Vivint Solar Competitors -180.56% -61.16% -10.35%

Summary

Vivint Solar beats its rivals on 8 of the 13 factors compared.

Vivint Solar Company Profile

Vivint Solar, Inc. offers distributed solar energy, electricity generated by a solar energy system installed at or near customers’ locations, to residential customers. Through investment funds, the Company owns solar energy systems it installs and provides solar electricity pursuant to long-term contracts with its customers. The Company also sells solar energy systems outright to customers. The Company deploys its direct-to-home sales force to provide in-person professional consultations to prospective customers to evaluate the feasibility of installing a solar energy system at their residence. The Company’s systems use communication gateways and monitoring services to collect performance data. The Company operates in Arizona, California, Connecticut, Florida, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, New York, Pennsylvania, South Carolina, Texas and Utah. The Company purchases solar panels directly from multiple manufacturers.

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