Sun vs SOL Which Is a Smarter Choice?

Sun vs SOL stocks refer to the two different types of stocks offered by Sunrun Inc., a leading provider of residential solar energy services. While Sun stocks represent the company's common shares, SOL stocks are a unique class of stock designed to track the performance of solar power systems installed by Sunrun. Investors interested in green energy and sustainability may find these stocks appealing as they provide the opportunity to support renewable energy initiatives while potentially earning a return on investment.

Sun or SOL?

When comparing Sun and SOL, 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 Sun and SOL.

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. Sun has a dividend yield of 1.03%, while SOL has a dividend yield of 1.02%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Sun reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, SOL reports a 5-year dividend growth of 17.08% year and a payout ratio of 19.28%.

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 Sun P/E ratio at -258.23 and SOL's P/E ratio at 18.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Sun P/B ratio is 5.10 while SOL's P/B ratio is 3.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Sun has seen a 5-year revenue growth of -0.60%, while SOL's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Sun's ROE at -2.13% and SOL's ROE at 18.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥8100.00 for Sun and €35.35 for SOL. Over the past year, Sun's prices ranged from ¥2035.00 to ¥8720.00, with a yearly change of 328.50%. SOL's prices fluctuated between €25.40 and €37.95, with a yearly change of 49.41%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.