Analyzing Real Goods Solar (RGSE) and Tecnoglass (TGLS)

Real Goods Solar (NASDAQ: RGSE) and Tecnoglass (NASDAQ:TGLS) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Volatility and Risk

Real Goods Solar has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500. Comparatively, Tecnoglass has a beta of 0.5, meaning that its share price is 50% less volatile than the S&P 500.

Institutional and Insider Ownership

3.3% of Real Goods Solar shares are owned by institutional investors. Comparatively, 3.8% of Tecnoglass shares are owned by institutional investors. 0.2% of Real Goods Solar shares are owned by insiders. Comparatively, 67.2% of Tecnoglass shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Real Goods Solar and Tecnoglass’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Real Goods Solar $14.24 million 0.46 -$12.03 million ($334.75) 0.00
Tecnoglass $308.14 million 0.77 $57.67 million ($0.27) -25.96

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Real Goods Solar and Tecnoglass, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Real Goods Solar 0 0 0 0 N/A
Tecnoglass 0 1 1 0 2.50

Tecnoglass has a consensus price target of $17.00, suggesting a potential upside of 142.55%. Given Tecnoglass’ higher possible upside, analysts plainly believe Tecnoglass is more favorable than Real Goods Solar.

Profitability

This table compares Real Goods Solar and Tecnoglass’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Real Goods Solar -184.38% -233.16% -88.89%
Tecnoglass -2.45% 16.94% 4.36%

Dividends

Tecnoglass pays an annual dividend of $0.13 per share and has a dividend yield of 1.9%. Real Goods Solar does not pay a dividend. Tecnoglass pays out -48.1% of its earnings in the form of a dividend.

Summary

Tecnoglass beats Real Goods Solar on 13 of the 14 factors compared between the two stocks.

Real Goods Solar Company Profile

Real Goods Solar, Inc. is a residential and commercial solar energy engineering, procurement, and construction company. The Company offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals and warranty and customer satisfaction activities. Its solar energy systems use solar photovoltaic (PV) modules. The Company operates in three segments: Residential – the installation of solar systems for homeowners, including lease financing thereof, and for small businesses (small commercial) in the continental United States; Sunetric – the installation of solar systems for both homeowners and small business owners (small commercial) in Hawaii, and Other – retail store and corporate operations.

Tecnoglass Company Profile

Tecnoglass Inc., through its subsidiaries, manufactures and sells architectural glass and windows for residential and commercial construction industries in North, Central, and South America. The company offers soft coat, laminated/thermo-laminated, thermo-acoustic, tempered, silk-screened, curved, and digital print glass. It also produces, exports, imports, and markets aluminum products, including profiles, rods, bars, plates, tubes, and other hardware used in the manufacture of architectural glass settings, such as windows, doors, spatial separators, and similar products. In addition, the company provides floating facades, windows and doors, commercial display windows, hurricane-proof windows, automatic doors, bathroom dividers, polyvinyl structures, and other components of architectural systems. It markets and sells its products under the Tecnoglass, ES Windows, and Alutions brands through internal and independent sales representatives, as wells as directly to distributors. The company was founded in 1984 and is headquartered in Barranquilla, Colombia. Tecnoglass Inc. is a subsidiary of Energy Holding Corporation.

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