Critical Survey: Altus Power (NYSE:AMPS) & Summer Energy (OTCMKTS:SUME)

Summer Energy (OTCMKTS:SUME) and Altus Power (NYSE:AMPS) are both small-cap utilities companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Institutional and Insider Ownership

46.6% of Altus Power shares are held by institutional investors. 56.8% of Summer Energy shares are held by company insiders. Comparatively, 24.3% of Altus Power 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.

Analyst Ratings

This is a breakdown of current recommendations for Summer Energy and Altus Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summer Energy	0	0	0	0	0.00
Altus Power	0	5	4	0	2.44

Altus Power has a consensus price target of $5.06, indicating a potential upside of 3.42%. Given Altus Power’s stronger consensus rating and higher probable upside, analysts clearly believe Altus Power is more favorable than Summer Energy.

Valuation and Earnings

This table compares Summer Energy and Altus Power”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summer Energy	N/A	N/A	N/A	N/A	N/A
Altus Power	$155.16 million	5.07	-$9.35 million	$0.22	22.25

Summer Energy has higher earnings, but lower revenue than Altus Power.

Volatility and Risk

Summer Energy has a beta of -120.11, indicating that its stock price is 12,111% less volatile than the S&P 500. Comparatively, Altus Power has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Summer Energy and Altus Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summer Energy	N/A	N/A	N/A
Altus Power	19.18%	4.79%	1.16%

Summary

Altus Power beats Summer Energy on 9 of the 10 factors compared between the two stocks.

About Summer Energy

Summer Energy Holdings, Inc., through its subsidiaries, operates as a retail electric provider in Texas, Massachusetts, New Hampshire, Ohio, and Illinois. It procures wholesale energy and resells to commercial and residential customers. The company was founded in 2011 and is headquartered in Houston, Texas.

About Altus Power

Altus Power, Inc., a clean electrification company, develops, owns, constructs, and operates roof, ground, and carport-based photovoltaic solar energy generation and storage systems. It serves commercial, industrial, public sector, and community solar customers. Altus Power, Inc. was founded in 2013 and is headquartered in Stamford, Connecticut.