Reviewing Enlight Renewable Energy (NASDAQ:ENLT) and Principal Solar (OTCMKTS:PSWW)

Enlight Renewable Energy (NASDAQ:ENLT) and Principal Solar (OTCMKTS:PSWW) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Volatility & Risk

Enlight Renewable Energy has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Principal Solar has a beta of 6.55, indicating that its stock price is 555% more volatile than the S&P 500.

Valuation and Earnings

This table compares Enlight Renewable Energy and Principal Solar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enlight Renewable Energy	$255.70 million	7.15	$70.92 million	$0.44	35.93
Principal Solar	N/A	N/A	N/A	N/A	N/A

Enlight Renewable Energy has higher revenue and earnings than Principal Solar.

Institutional & Insider Ownership

38.9% of Enlight Renewable Energy shares are owned by institutional investors. 39.2% of Principal Solar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Enlight Renewable Energy and Principal Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enlight Renewable Energy	13.58%	3.34%	1.01%
Principal Solar	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations for Enlight Renewable Energy and Principal Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enlight Renewable Energy	0	1	2	0	2.67
Principal Solar	0	0	0	0	0.00

Enlight Renewable Energy currently has a consensus price target of $19.67, suggesting a potential upside of 24.39%. Given Enlight Renewable Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Enlight Renewable Energy is more favorable than Principal Solar.

Summary

Enlight Renewable Energy beats Principal Solar on 8 of the 10 factors compared between the two stocks.

About Enlight Renewable Energy

Enlight Renewable Energy Ltd operates a renewable energy platform in Israel, Central-Eastern Europe, Western Europe, and the United States. The company develops, finances, constructs, owns, and operates utility-scale renewable energy projects. It develops wind energy and solar energy projects, as well as energy storage projects. The company was incorporated in 1981 and is headquartered in Rosh Haayin, Israel.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.