Enterprise Products Partners (NYSE:EPD) and Sunrun (NASDAQ:RUN) are both large-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.
Institutional and Insider Ownership
30.5% of Enterprise Products Partners shares are held by institutional investors. Comparatively, 85.4% of Sunrun shares are held by institutional investors. 37.5% of Enterprise Products Partners shares are held by insiders. Comparatively, 8.6% of Sunrun shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Enterprise Products Partners and Sunrun's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Enterprise Products Partners | $32.79 billion | 1.49 | $4.59 billion | $2.15 | 10.43 |
Sunrun | $858.58 million | 13.78 | $26.33 million | $0.21 | 285.14 |
Enterprise Products Partners has higher revenue and earnings than Sunrun. Enterprise Products Partners is trading at a lower price-to-earnings ratio than Sunrun, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Enterprise Products Partners and Sunrun, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Enterprise Products Partners | 0 | 0 | 14 | 1 | 3.07 |
Sunrun | 1 | 3 | 12 | 0 | 2.69 |
Enterprise Products Partners currently has a consensus target price of $25.2857, indicating a potential upside of 12.78%. Sunrun has a consensus target price of $81.6875, indicating a potential upside of 36.42%. Given Sunrun's higher possible upside, analysts clearly believe Sunrun is more favorable than Enterprise Products Partners.
Risk and Volatility
Enterprise Products Partners has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Sunrun has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.
Profitability
This table compares Enterprise Products Partners and Sunrun's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Enterprise Products Partners | 16.10% | 17.76% | 7.40% |
Sunrun | 1.00% | 0.65% | 0.14% |
Summary
Enterprise Products Partners beats Sunrun on 10 of the 15 factors compared between the two stocks.