Analyzing Xcel Energy (NASDAQ:XEL) and SolarBank (NASDAQ:SUUN)

SolarBank (NASDAQ:SUUN) and Xcel Energy (NASDAQ:XEL) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for SolarBank and Xcel Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarBank	0	0	1	0	3.00
Xcel Energy	0	2	8	0	2.80

SolarBank currently has a consensus price target of $6.00, suggesting a potential upside of 146.91%. Xcel Energy has a consensus price target of $72.60, suggesting a potential upside of 2.56%. Given SolarBank’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SolarBank is more favorable than Xcel Energy.

Profitability

This table compares SolarBank and Xcel Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarBank	-10.64%	-15.19%	-6.41%
Xcel Energy	14.40%	10.65%	2.90%

Insider and Institutional Ownership

78.4% of Xcel Energy shares are held by institutional investors. 0.1% of Xcel Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares SolarBank and Xcel Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarBank	$52.15 million	1.51	-$2.56 million	($0.22)	-11.05
Xcel Energy	$13.44 billion	3.03	$1.94 billion	$3.44	20.58

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

Summary

Xcel Energy beats SolarBank on 11 of the 13 factors compared between the two stocks.

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.

About Xcel Energy

Xcel Energy Inc., through its subsidiaries, engages in the generation, purchasing, transmission, distribution, and sale of electricity. It operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments. The company generates electricity through wind, nuclear, hydroelectric, biomass, and solar energy sources, as well as coal, natural gas, oil, wood, and refuse-derived fuels. It also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas. In addition, the company develops and leases natural gas pipelines, and storage and compression facilities; and invests in rental housing projects and nonregulated assets, as well as procures equipment for the construction of renewable generation facilities. It serves residential, commercial, and industrial customers in the portions of Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas, and Wisconsin. The company was incorporated in 1909 and is headquartered in Minneapolis, Minnesota.