Financial Analysis: SunPower (SPWR) versus Kyocera (KYO)

SunPower (NASDAQ:SPWR) and Kyocera (NYSE:KYO) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for SunPower and Kyocera, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunPower 0 7 2 0 2.22
Kyocera 0 0 3 0 3.00

SunPower presently has a consensus price target of $8.88, suggesting a potential upside of 28.81%. Given SunPower’s higher possible upside, equities research analysts clearly believe SunPower is more favorable than Kyocera.

Institutional and Insider Ownership

27.2% of SunPower shares are held by institutional investors. Comparatively, 0.6% of Kyocera shares are held by institutional investors. 0.9% of SunPower shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

SunPower has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Kyocera has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Earnings and Valuation

This table compares SunPower and Kyocera’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunPower $1.87 billion 0.52 -$851.16 million ($0.41) -16.80
Kyocera $14.24 billion 1.42 $736.10 million $2.01 27.44

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

Profitability

This table compares SunPower and Kyocera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunPower -60.01% 1.37% 0.17%
Kyocera 5.13% 3.31% 2.57%

Dividends

Kyocera pays an annual dividend of $0.47 per share and has a dividend yield of 0.9%. SunPower does not pay a dividend. Kyocera pays out 23.4% of its earnings in the form of a dividend. Kyocera has increased its dividend for 2 consecutive years.

Summary

Kyocera beats SunPower on 12 of the 17 factors compared between the two stocks.

About SunPower

SunPower Corporation researches, develops, manufactures, and delivers solar solutions worldwide. It operates through three segments: Residential, Commercial, and Power Plant. The company provides solar power components, including panels and system components, primarily to dealers, system integrators, and distributors. It also offers commercial rooftop and ground-mounted solar power systems, and residential mounting systems, as well as utility-scale photovoltaic power plants. In addition, the company provides post-installation operations and maintenance services. Further, it leases solar power systems to residential customers; and sells inverters manufactured by third parties. The company also serves investors, financial institutions, project developers, electric utilities, independent power producers, commercial and governmental entities, production home builders, residential owners, and small commercial building owners. The company was incorporated in 1985 and is headquartered in San Jose, California. SunPower Corporation is a subsidiary of Total Solar International SAS.

About Kyocera

Kyocera Corporation develops, produces, and sells industrial components, and telecommunications and information equipment worldwide. Its Fine Ceramic Parts Group segment offers components for semiconductor processing and flat panel display manufacturing equipment, information and telecommunication components, general industrial machinery components, LED related products, and automotive components. The company's Semiconductor Parts Group segment provides inorganic (ceramic) and organic packages, and organic multilayer boards and packaging materials for various electronic components and devices, such as crystal components, SAW devices and CMOS/CCD sensors for communication infrastructures and automotive-related markets. Its Applied Ceramic Products Group segment offers monocrystalline and multi crystalline silicon solar modules and power generating systems; cutting tools; medical devices; and recrystallized jewelry and applied ceramic related products. The company's Electronic Device Group segment provides electronic components and devices comprising capacitors, SAW devices, crystal components, connectors, power semiconductor products, printing devices, and liquid crystal displays for information and communications equipment, industrial equipment, and automotive markets. Its Telecommunications Equipment Group segment manufactures smartphones, mobile phones, and communication modules for telecommunications carriers and Internet of Things market. The company's Information Equipment Group segment provides monochrome and color printers, multifunctional products, document solutions, application software, and supplies. Its Others segment offers information systems and telecommunication, engineering, management consulting, and realty development services. The company was formerly known as Kyoto Ceramic Kabushiki Kaisha and changed its name to Kyocera Corporation in 1982. Kyocera Corporation was founded in 1959 and is headquartered in Kyoto, Japan.

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