Comparing Spruce Power (NYSE:SPRU) and PPL (NYSE:PPL)

Spruce Power (NYSE:SPRU) and PPL (NYSE:PPL) are both computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

Spruce Power has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, PPL has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Spruce Power and PPL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Power	0	0	0	0	0.00
PPL	0	3	8	0	2.73

PPL has a consensus price target of $34.09, suggesting a potential upside of 5.58%. Given PPL’s stronger consensus rating and higher probable upside, analysts plainly believe PPL is more favorable than Spruce Power.

Profitability

This table compares Spruce Power and PPL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spruce Power	-121.98%	-23.98%	-5.48%
PPL	9.95%	9.20%	3.25%

Institutional and Insider Ownership

20.8% of Spruce Power shares are held by institutional investors. Comparatively, 77.0% of PPL shares are held by institutional investors. 9.6% of Spruce Power shares are held by company insiders. Comparatively, 0.2% of PPL shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Spruce Power and PPL”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$79.86 million	0.64	-$65.83 million	($5.06)	-0.54
PPL	$8.28 billion	2.88	$740.00 million	$1.12	28.83

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

Summary

PPL beats Spruce Power on 12 of the 14 factors compared between the two stocks.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.