Vivint Solar (NYSE: VSLR) and Babcock & Wilcox Enterprises (NYSE:BW) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares Vivint Solar and Babcock & Wilcox Enterprises’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Babcock & Wilcox Enterprises||-24.38%||-53.87%||-13.38%|
This is a breakdown of recent ratings and target prices for Vivint Solar and Babcock & Wilcox Enterprises, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Babcock & Wilcox Enterprises||1||3||0||0||1.75|
Vivint Solar currently has a consensus price target of $5.40, suggesting a potential upside of 36.71%. Babcock & Wilcox Enterprises has a consensus price target of $5.17, suggesting a potential upside of 109.18%. Given Babcock & Wilcox Enterprises’ higher probable upside, analysts clearly believe Babcock & Wilcox Enterprises is more favorable than Vivint Solar.
Valuation and Earnings
This table compares Vivint Solar and Babcock & Wilcox Enterprises’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vivint Solar||$268.03 million||1.69||$209.09 million||($1.58)||-2.50|
|Babcock & Wilcox Enterprises||$1.56 billion||0.07||-$379.82 million||($4.00)||-0.62|
Vivint Solar has higher earnings, but lower revenue than Babcock & Wilcox Enterprises. Vivint Solar is trading at a lower price-to-earnings ratio than Babcock & Wilcox Enterprises, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Vivint Solar has a beta of -0.52, suggesting that its share price is 152% less volatile than the S&P 500. Comparatively, Babcock & Wilcox Enterprises has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.
Insider & Institutional Ownership
92.8% of Vivint Solar shares are owned by institutional investors. Comparatively, 77.2% of Babcock & Wilcox Enterprises shares are owned by institutional investors. 4.5% of Vivint Solar shares are owned by company insiders. Comparatively, 2.5% of Babcock & Wilcox Enterprises shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Vivint Solar beats Babcock & Wilcox Enterprises on 10 of the 13 factors compared between the two stocks.
Vivint Solar Company Profile
Vivint Solar, Inc. provides distributed solar energy to residential, commercial, and industrial customers in the United States. The company operates in two segments, Residential, and Commercial and Industrial. It owns and installs solar energy systems through long-term customer contracts. The company also sells photovoltaic installation products, as well as solar renewable energy certificates. As of December 31, 2017, it had an aggregate capacity of 864.9 megawatts covering approximately 126,800 homes in 21 states. The company was formerly known as V Solar Holdings, Inc. and changed its name to Vivint Solar, Inc. in April 2014. Vivint Solar, Inc. was founded in 2011 and is headquartered in Lehi, Utah.
Babcock & Wilcox Enterprises Company Profile
Babcock & Wilcox Enterprises, Inc. is a technology-based provider of fossil and renewable power generation and environmental equipment that includes a suite of boiler products and environmental systems, and services for power and industrial uses. The Company operates in three segments: Power, Renewable and Industrial. Through its Power segment, the Company provides the supply of and aftermarket services for steam-generating, environmental, and auxiliary equipment for power generation and other industrial applications. The Renewable segment provides steam-generating systems, environmental and auxiliary equipment for the waste-to-energy and biomass power generation industries, and plant operations and maintenance services for its systems and equipment. The Industrial segment focuses on custom-engineered cooling, environmental, noise abatement and industrial equipment along with related aftermarket services.
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