Real Goods Solar (NASDAQ:RGSE) and Obayashi (OTCMKTS:OBYCF) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Risk and Volatility

Real Goods Solar has a beta of 1.59, indicating that its share price is 59% more volatile than the S&P 500. Comparatively, Obayashi has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Insider & Institutional Ownership

0.7% of Real Goods Solar shares are held by institutional investors. 0.3% of Real Goods Solar shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Real Goods Solar -239.87% -828.54% -242.52%
Obayashi 4.76% 13.84% 4.64%

Earnings & Valuation

This table compares Real Goods Solar and Obayashi’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Real Goods Solar $15.17 million 2.90 -$17.70 million N/A N/A
Obayashi $17.16 billion N/A $872.20 million N/A N/A

Obayashi has higher revenue and earnings than Real Goods Solar.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Real Goods Solar and Obayashi, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Real Goods Solar 0 0 1 0 3.00
Obayashi 0 0 0 0 N/A

Real Goods Solar currently has a consensus price target of $2.00, suggesting a potential upside of 250.75%. Given Real Goods Solar’s higher probable upside, equities analysts plainly believe Real Goods Solar is more favorable than Obayashi.

About Real Goods Solar

Real Goods Solar, Inc. operates as a residential and small business commercial solar energy engineering, procurement, and construction company in the United States. The company's Residential segment installs solar energy systems for homeowners, including lease financing, as well as small business commercial services in the continental United States. Its Sunetric segment installs solar energy systems for homeowners and business owners in Hawaii. The company's POWERHOUSE segment manufactures and sells solar shingles. The company Real Goods Solar, Inc. offers solar energy services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty. The company markets its products and services through an outside sales team, inside sales, e-sales, and customer referral programs, as well as an online direct marketing channel. Real Goods Solar, Inc. was founded in 1978 and is headquartered in Denver, Colorado.

About Obayashi

Obayashi Corporation engages in the construction business in Japan, North America, Asia, the Middle East, Europe, and Oceania. The company constructs buildings, including offices, condominiums, commercial facilities, factories, hospitals, and schools; and civil engineering projects, such as tunnels, bridges, dams, riverbanks, railroads, and expressways. It is also involved in the development and leasing of real estate properties in various locations, primarily in metropolitan areas; solar power generation and private finance initiatives businesses; and operation of golf course, as well as provision of urban development, contracted engineering, management, consultancy services, etc. The company was founded in 1892 and is headquartered in Tokyo, Japan.

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