Financial Review: SunPower (NASDAQ:SPWR) and Maxeon Solar Technologies (NASDAQ:MAXN)

SunPower (NASDAQ:SPWR) and Maxeon Solar Technologies (NASDAQ:MAXN) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation & Earnings

This table compares SunPower and Maxeon Solar Technologies’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunPower	$1.69 billion	0.28	-$247.11 million	($1.37)	-1.96
Maxeon Solar Technologies	$1.12 billion	0.01	-$275.83 million	($7.80)	-0.03

SunPower has higher revenue and earnings than Maxeon Solar Technologies. SunPower is trading at a lower price-to-earnings ratio than Maxeon Solar Technologies, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

47.4% of SunPower shares are held by institutional investors. Comparatively, 47.7% of Maxeon Solar Technologies shares are held by institutional investors. 0.3% of SunPower shares are held by insiders. Comparatively, 0.9% of Maxeon Solar Technologies shares are held by 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SunPower and Maxeon Solar Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunPower	10	10	0	0	1.50
Maxeon Solar Technologies	4	6	0	0	1.60

SunPower currently has a consensus price target of $4.56, suggesting a potential upside of 69.61%. Maxeon Solar Technologies has a consensus price target of $4.41, suggesting a potential upside of 1,755.26%. Given Maxeon Solar Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Maxeon Solar Technologies is more favorable than SunPower.

Volatility & Risk

SunPower has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, Maxeon Solar Technologies has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares SunPower and Maxeon Solar Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunPower	-14.15%	-40.95%	-11.70%
Maxeon Solar Technologies	-37.92%	-390.12%	-32.72%

Summary

SunPower beats Maxeon Solar Technologies on 8 of the 13 factors compared between the two stocks.

About SunPower

SunPower Corporation, a solar technology and energy services provider, offers solar, storage, and home energy solutions primarily in the United States and Canada. Its solutions include the Equinox and SunVault systems which are pre-engineered modular solutions for residential applications that combine solar module technology with integrated plug-and-play power stations, cable management systems, and mounting hardware that enable dealers and installers to complete system installations, as well as for end customers to manage their energy production. The company also provides post-installation monitoring and maintenance services. It serves residential customers, including individual homeowners and new home builders. The company was incorporated in 1985 and is headquartered in Richmond, California. SunPower Corporation operates as a subsidiary of TotalEnergies SE.

About Maxeon Solar Technologies

Maxeon Solar Technologies, Ltd. designs, manufactures, markets, and sells solar panels and related solar system components worldwide. The company provides interdigitated back contact and shingled solar cells and panels under the SunPower brand. It offers its products to dealers, project developers, system integrators, distributors, resellers, and residential and small-scale commercial customers. The company was incorporated in 2019 and is headquartered in Singapore.