Analyzing SUNation Energy (NASDAQ:SUNE) and NETGEAR (NASDAQ:NTGR)

NETGEAR (NASDAQ:NTGR) and SUNation Energy (NASDAQ:SUNE) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Earnings and Valuation

This table compares NETGEAR and SUNation Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NETGEAR	$673.76 million	1.06	$12.36 million	$0.40	62.08
SUNation Energy	$60.93 million	0.03	-$8.13 million	N/A	N/A

NETGEAR has higher revenue and earnings than SUNation Energy.

Volatility & Risk

NETGEAR has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, SUNation Energy has a beta of 2.96, suggesting that its stock price is 196% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for NETGEAR and SUNation Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NETGEAR	0	1	1	0	2.50
SUNation Energy	0	0	0	0	0.00

NETGEAR presently has a consensus target price of $21.00, indicating a potential downside of 15.42%. Given NETGEAR’s stronger consensus rating and higher possible upside, research analysts plainly believe NETGEAR is more favorable than SUNation Energy.

Profitability

This table compares NETGEAR and SUNation Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NETGEAR	1.83%	-9.24%	-5.83%
SUNation Energy	-17.55%	-373.78%	-19.77%

Insider and Institutional Ownership

83.0% of NETGEAR shares are held by institutional investors. Comparatively, 4.2% of SUNation Energy shares are held by institutional investors. 7.0% of NETGEAR shares are held by company insiders. Comparatively, 0.3% of SUNation Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

NETGEAR beats SUNation Energy on 11 of the 12 factors compared between the two stocks.

About NETGEAR

NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.

About SUNation Energy

SUNation Energy Inc. is focused on local and regional solar, storage and energy services companies. Its portfolio of brands provides homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage and grid services. SUNation Energy Inc., formerly known as Pineapple Energy, is based in RONKONKOMA, N.Y.