Wolfspeed (NYSE:WOLF) vs. SunPower (NASDAQ:SPWR) Head to Head Contrast

SunPower (NASDAQ:SPWR) and Wolfspeed (NYSE:WOLF) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Institutional and Insider Ownership

47.4% of SunPower shares are owned by institutional investors. 0.3% of SunPower shares are owned by company insiders. Comparatively, 0.6% of Wolfspeed shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares SunPower and Wolfspeed’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunPower	$1.69 billion	0.30	-$247.11 million	($1.37)	-2.13
Wolfspeed	$921.90 million	3.59	-$329.90 million	($6.46)	-4.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SunPower	-14.15%	-40.95%	-11.70%
Wolfspeed	-96.12%	-27.37%	-4.78%

Volatility and Risk

SunPower has a beta of 1.8, meaning that its stock price is 80% more volatile than the S&P 500. Comparatively, Wolfspeed has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for SunPower and Wolfspeed, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunPower	10	10	0	0	1.50
Wolfspeed	1	9	4	0	2.21

SunPower presently has a consensus price target of $4.59, indicating a potential upside of 57.11%. Wolfspeed has a consensus price target of $36.29, indicating a potential upside of 38.13%. Given SunPower’s higher probable upside, research analysts plainly believe SunPower is more favorable than Wolfspeed.

Summary

SunPower beats Wolfspeed on 8 of the 14 factors compared between the two stocks.

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.

About Wolfspeed

Wolfspeed, Inc. operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications. The company also provides power devices, such as silicon carbide Schottky diodes, metal oxide semiconductor field effect transistors (MOSFETs), and power modules for customers and distributors to use in applications, including electric vehicles comprising charging infrastructure, server power supplies, solar inverters, uninterruptible power supplies, industrial power supplies, and other applications. In addition, it offers RF devices comprising GaN-based die, high-electron mobility transistors, monolithic microwave integrated circuits, and laterally diffused MOSFET power transistors for telecommunications infrastructure, military, and other commercial applications. The company was formerly known as Cree, Inc. and changed its name to Wolfspeed, Inc. in October 2021. Wolfspeed, Inc. was incorporated in 1987 and is headquartered in Durham, North Carolina.