Critical Review: SolarBank (SUUN) vs. Its Competitors

SolarBank (NASDAQ:SUUN) is one of 29 public companies in the “Electric & other services combined” industry, but how does it contrast to its peers? We will compare SolarBank to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and target prices for SolarBank and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarBank	0	0	1	0	3.00
SolarBank Competitors	570	2841	2101	16	2.28

SolarBank presently has a consensus target price of $6.00, indicating a potential upside of 31.29%. As a group, “Electric & other services combined” companies have a potential upside of 2.93%. Given SolarBank’s stronger consensus rating and higher probable upside, equities analysts clearly believe SolarBank is more favorable than its peers.

Profitability

This table compares SolarBank and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarBank	-10.64%	-15.19%	-6.41%
SolarBank Competitors	6.34%	10.12%	2.71%

Institutional & Insider Ownership

72.2% of shares of all “Electric & other services combined” companies are owned by institutional investors. 7.7% of shares of all “Electric & other services combined” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares SolarBank and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SolarBank	$43.08 million	-$2.56 million	-20.77
SolarBank Competitors	$10.09 billion	$855.48 million	17.95

SolarBank’s peers have higher revenue and earnings than SolarBank. SolarBank is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

SolarBank peers beat SolarBank on 8 of the 11 factors compared.

About SolarBank

SolarBank Corporation operates as an independent renewable and clean energy project developer and asset operator in Canada and the United States. The company engages in the site origination, development, financing, engineering, procurement, construction, operation, maintenance, and asset management of solar photovoltaic power generation projects. It offers solar energy solutions in the areas of behind-the-meter solar power plants, electricity grid connected community solar gardens, and utility scale solar farms. The company was formerly known as Abundant Solar Energy Inc. and changed its name to SolarBank Corporation in October 2022. SolarBank Corporation was incorporated in 2013 and is headquartered in Toronto, Canada.