First Solar vs Sunrun Which Is More Promising?

First Solar and Sunrun are two prominent companies in the renewable energy industry, with a focus on solar power. First Solar is a leading manufacturer of photovoltaic modules, while Sunrun is a leading provider of residential solar energy systems. Both companies have experienced fluctuations in their stock prices due to various factors such as market trends, government policies, and technological advancements. Investors often compare the performance and potential of these two stocks to make informed investment decisions in the dynamic renewable energy sector.

First Solar or Sunrun?

When comparing First Solar and Sunrun, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between First Solar and Sunrun.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. First Solar has a dividend yield of -%, while Sunrun has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. First Solar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Sunrun reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with First Solar P/E ratio at 16.62 and Sunrun's P/E ratio at -3.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. First Solar P/B ratio is 2.73 while Sunrun's P/B ratio is 0.43.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, First Solar has seen a 5-year revenue growth of 0.45%, while Sunrun's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with First Solar's ROE at 17.56% and Sunrun's ROE at -13.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $190.84 for First Solar and $9.89 for Sunrun. Over the past year, First Solar's prices ranged from $129.50 to $306.77, with a yearly change of 136.89%. Sunrun's prices fluctuated between $9.03 and $22.26, with a yearly change of 146.65%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.