Sunrun Inc. (RUN) vs SolarEdge Technologies, Inc. (SEDG)

Sunrun Inc. and SolarEdge Technologies, Inc. are both Solar companies. Sunrun Inc. and SolarEdge Technologies, Inc. are of similar size ($2.0B and $1.9B). SolarEdge Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Sunrun Inc. trades at 4.7×. Sunrun Inc. grew revenue faster over the last twelve months: 63.2% against 41.7%. Sunrun Inc. has the higher net margin (11.6% vs −20.3%) and the higher return on invested capital (0.31% vs −59.6%). Across the 18 metrics below, Sunrun Inc. leads on 12 and SolarEdge Technologies, Inc. on 6.

Valuation

Metric RUN SEDG Solar median
P/E 4.74 n/m 10.93
P/S 0.56 1.50 0.54
P/B 0.44 4.84 1.44
Price to free cash flow n/m 18.48 9.91
EV/EBITDA 19.02 n/m 9.90
EV/Sales 4.60 1.57 0.74
Earnings yield 21.09% (13.77%) 0.00%
Free cash flow yield (114.08%) 5.41% 0.00%

Profitability

Metric RUN SEDG Solar median
Gross margin 35.29% 23.27% 31.92%
Operating margin 2.66% (11.60%) (9.70%)
Net margin 11.59% (20.29%) (8.48%)
Free cash flow margin (63.62%) 8.85% (2.95%)
Return on equity 9.92% (58.42%) 5.34%
Return on assets 1.81% (11.28%) (5.36%)
Return on invested capital 0.31% (59.63%) (5.27%)

Growth

Metric RUN SEDG Solar median
Revenue growth (TTM) 63.23% 41.65% 16.97%
EPS growth (last fiscal year) 113.35% 78.26% —
Revenue growth, 5-year CAGR 26.24% (4.09%) 14.00%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RUN SEDG Solar median
Debt to equity 3.46 0.85 0.09
Current ratio 1.42 2.03 1.33
Net debt to EBITDA 22.50 0.84 0.03

Dividend

Metric RUN SEDG Solar median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric RUN SEDG Solar median
Market cap 1.90b 1.98b 43.46m

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