Comparing SunPower (NASDAQ:SPWR) & O2Micro International (NASDAQ:OIIM)

SunPower (NASDAQ:SPWR) and O2Micro International (NASDAQ:OIIM) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

30.4% of SunPower shares are held by institutional investors. Comparatively, 35.0% of O2Micro International shares are held by institutional investors. 0.7% of SunPower shares are held by insiders. Comparatively, 8.0% of O2Micro International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SunPower and O2Micro International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunPower 4 7 1 0 1.75
O2Micro International 0 0 1 0 3.00

SunPower presently has a consensus target price of $25.27, suggesting a potential upside of 16.95%. O2Micro International has a consensus target price of $8.00, suggesting a potential upside of 28.00%. Given O2Micro International’s stronger consensus rating and higher possible upside, analysts plainly believe O2Micro International is more favorable than SunPower.

Risk & Volatility

SunPower has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, O2Micro International has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares SunPower and O2Micro International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunPower 39.28% 5.04% 0.97%
O2Micro International 13.62% 15.09% 12.41%

Earnings and Valuation

This table compares SunPower and O2Micro International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunPower $1.12 billion 3.32 $475.05 million ($0.17) -127.12
O2Micro International $78.33 million 2.27 $6.13 million $0.21 29.76

SunPower has higher revenue and earnings than O2Micro International. SunPower is trading at a lower price-to-earnings ratio than O2Micro International, indicating that it is currently the more affordable of the two stocks.

Summary

O2Micro International beats SunPower on 8 of the 13 factors compared between the two stocks.

About SunPower

SunPower Corp. engages in the design, manufacture and deliver of solar panels and systems. It operates through the following business segments: Residential, Light Commercial; Commercial & Industrial Solutions; and Other. The Residential, Light Commercial segment refers to the sales of solar energy solutions, including sales to its third-party dealer network and resellers, storage solutions, cash and loan sales, and long-term leases directly to end customers. The Commercial and Industrial Solutions segment includes direct sales of turn-key engineering, procurement, and construction services and sales of energy under power purchase agreements. The Other Segment consists worldwide power plant project development, project sales, and U.S. manufacturing. The company was founded by Thomas L. Dinwoodie, Robert Lorenzini and Richard M. Swanson in April 1985 and is headquartered in San Jose, CA.

About O2Micro International

O2Micro International Ltd. engages in designing, developing, and marketing of integrated circuits and solutions. It offers solutions for manufacturers of products in the consumer electronics, computers, industrial, communications, and automotive markets. Its products include backlighting and battery management. The company was founded in April 1995 and is headquartered in George Town, Cayman Islands.

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