Fortis (NYSE:FTS) & Spruce Power (NYSE:SPRU) Head to Head Survey

Spruce Power (NYSE:SPRU) and Fortis (NYSE:FTS) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Institutional and Insider Ownership

20.8% of Spruce Power shares are owned by institutional investors. Comparatively, 57.8% of Fortis shares are owned by institutional investors. 9.6% of Spruce Power shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Spruce Power and Fortis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spruce Power	-76.20%	-10.61%	-2.61%
Fortis	13.90%	7.04%	2.34%

Risk & Volatility

Spruce Power has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Fortis has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Spruce Power and Fortis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spruce Power	0	0	0	0	N/A
Fortis	3	1	0	0	1.25

Fortis has a consensus price target of $61.00, suggesting a potential upside of 35.54%. Given Fortis’ higher possible upside, analysts plainly believe Fortis is more favorable than Spruce Power.

Valuation & Earnings

This table compares Spruce Power and Fortis”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spruce Power	$79.86 million	0.59	-$65.83 million	($2.68)	-0.96
Fortis	$11.39 billion	1.96	$1.17 billion	$2.32	19.40

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

Summary

Fortis beats Spruce Power on 10 of the 12 factors compared between the two stocks.

About Spruce Power

Spruce Power Holding Corporation owns and operates distributed solar energy assets in the United States. The company provides subscription-based services for homeowners and businesses to own and maintain rooftop solar and battery storage. It offers its subscription-based services to approximately 75,000 customers. The company is headquartered in Denver, Colorado.

About Fortis

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 447,000 retail customers in southeastern Arizona; and 103,000 retail customers in Arizona's Mohave and Santa Cruz counties with an aggregate capacity of 3,408 megawatts (MW), including 68 MW of solar capacity and 250 MV of wind capacity. The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 65 MW; and distributes natural gas to approximately 1,087,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 592,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to five hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 145 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 69,000 customers in Ontario; approximately 275,000 customers in Newfoundland and Labrador; approximately 34,000 customers on Grand Cayman, Cayman Islands; and approximately 17,000 customers on certain islands in Turks and Caicos. It also holds long-term contracted generation assets in Belize consisting of 3 hydroelectric generating facilities with a combined capacity of 51 MW; and the Aitken Creek natural gas storage facility. It also owns and operates approximately 90,500 circuit Kilometers (km) of distribution lines; and approximately 51,600 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in St. John's, Canada.