Financial Comparison: Sunrun (NASDAQ:RUN) vs. Fervo Energy (NASDAQ:FRVO)
by Kim Johansen · The Markets DailySunrun (NASDAQ:RUN – Get Free Report) and Fervo Energy (NASDAQ:FRVO – Get Free Report) are both mid-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
91.7% of Sunrun shares are held by institutional investors. 3.5% of Sunrun shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Sunrun and Fervo Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sunrun | 11.59% | 9.59% | 1.77% |
| Fervo Energy | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of current ratings and price targets for Sunrun and Fervo Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sunrun | 2 | 8 | 12 | 0 | 2.45 |
| Fervo Energy | 1 | 2 | 11 | 2 | 2.88 |
Sunrun currently has a consensus price target of $16.81, indicating a potential upside of 90.73%. Fervo Energy has a consensus price target of $44.00, indicating a potential upside of 140.70%. Given Fervo Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Fervo Energy is more favorable than Sunrun.
Earnings & Valuation
This table compares Sunrun and Fervo Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sunrun | $2.96 billion | 0.72 | $449.95 million | $1.48 | 5.96 |
| Fervo Energy | N/A | N/A | N/A | N/A | N/A |
Sunrun has higher revenue and earnings than Fervo Energy.
Summary
Sunrun beats Fervo Energy on 7 of the 10 factors compared between the two stocks.
About Sunrun
Sunrun Inc. designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.
About Fervo Energy
Fervo Energy Company is a geothermal energy developer, builds, owns and operates geothermal power facilities. Fervo Energy Company is based in Houston, Texas.