Contrasting SunPower (NASDAQ:SPWR) & STMicroelectronics (NYSE:STM)

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

Earnings & Valuation

This table compares STMicroelectronics and SunPower”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
STMicroelectronics	$15.41 billion	1.63	$4.21 billion	$3.90	7.14
SunPower	$1.69 billion	0.01	-$247.11 million	($1.37)	-0.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
STMicroelectronics	19.68%	18.18%	12.52%
SunPower	-14.15%	-40.95%	-11.70%

Risk and Volatility

STMicroelectronics has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, SunPower has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
STMicroelectronics	0	4	7	0	2.64
SunPower	11	8	0	0	1.42

STMicroelectronics currently has a consensus target price of $43.13, suggesting a potential upside of 54.88%. SunPower has a consensus target price of $3.48, suggesting a potential upside of 2,733.45%. Given SunPower’s higher possible upside, analysts plainly believe SunPower is more favorable than STMicroelectronics.

Institutional and Insider Ownership

5.1% of STMicroelectronics shares are owned by institutional investors. Comparatively, 47.4% of SunPower shares are owned by institutional investors. 0.3% of SunPower shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

STMicroelectronics beats SunPower on 10 of the 14 factors compared between the two stocks.

About STMicroelectronics

STMicroelectronics N.V., together with its subsidiaries, designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates through Automotive and Discrete Group; Analog, MEMS and Sensors Group; and Microcontrollers and Digital ICs Group segments. The Automotive and Discrete Group segment offers automotive integrated circuits (ICs), and discrete and power transistor products. The Analog, MEMS and Sensors Group segment provides industrial application-specific integrated circuits (ASICs) and application-specific standard products (ASSPs); general purpose analog products; custom analog ICs; wireless charging solutions; galvanic isolated gate drivers; low and high voltage amplifiers, comparators, and current-sense amplifiers; MasterGaN, a solution that integrates a silicon driver and GaN power transistors in a single package; wireline and wireless connectivity ICs; touch screen controllers; micro-electro-mechanical systems (MEMS) products, including sensors or actuators; and optical sensing solutions. The Microcontrollers and Digital ICs Group segment offers general purpose and secure microcontrollers; and radio frequency (RF) products. It also offers application-specific standard products for analog, digital and mixed-signal applications. In addition, the company provides assembly and other services. It sells its products through distributors and retailers, as well as through sales representatives. The company serves automotive, industrial, personal electronics and communications equipment, and computers and peripherals markets. STMicroelectronics N.V. was incorporated in 1987 and is headquartered in Geneva, Switzerland.

About SunPower

SunPower Corporation, a solar technology and energy services provider, offers solar, storage, and home energy solutions primarily in the United States and Canada. Its solutions include the Equinox and SunVault systems which are pre-engineered modular solutions for residential applications that combine solar module technology with integrated plug-and-play power stations, cable management systems, and mounting hardware that enable dealers and installers to complete system installations, as well as for end customers to manage their energy production. The company also provides post-installation monitoring and maintenance services. It serves residential customers, including individual homeowners and new home builders. The company was incorporated in 1985 and is headquartered in Richmond, California. SunPower Corporation operates as a subsidiary of TotalEnergies SE.