NETGEAR (NASDAQ:NTGR – Get Free Report) and SUNation Energy (NASDAQ:SUNE – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.
Profitability
This table compares NETGEAR and SUNation Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NETGEAR | 1.83% | -9.24% | -5.83% |
| SUNation Energy | -17.55% | -373.78% | -19.77% |
Insider & Institutional Ownership
83.0% of NETGEAR shares are owned by institutional investors. Comparatively, 4.2% of SUNation Energy shares are owned by institutional investors. 7.0% of NETGEAR shares are owned by insiders. Comparatively, 0.3% of SUNation Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NETGEAR | $673.76 million | 1.06 | $12.36 million | $0.40 | 62.00 |
| SUNation Energy | $60.93 million | 0.02 | -$8.13 million | N/A | N/A |
NETGEAR has higher revenue and earnings than SUNation Energy.
Analyst Recommendations
This is a summary of current ratings and recommmendations for NETGEAR and SUNation Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NETGEAR | 0 | 1 | 1 | 0 | 2.50 |
| SUNation Energy | 0 | 0 | 0 | 0 | 0.00 |
NETGEAR currently has a consensus price target of $21.00, suggesting a potential downside of 15.32%. Given NETGEAR’s stronger consensus rating and higher possible upside, equities analysts plainly believe NETGEAR is more favorable than SUNation Energy.
Risk and Volatility
NETGEAR has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, SUNation Energy has a beta of 2.96, suggesting that its stock price is 196% more volatile than the S&P 500.
Summary
NETGEAR beats SUNation Energy on 11 of the 12 factors compared between the two stocks.
About NETGEAR
NETGEAR, Inc. provides connectivity solutions the Americas; Europe, the Middle East, Africa; and the Asia Pacific. The company operates in two segments, Connected Home, and NETGEAR for Business. The Connected Home segment offers Wi-Fi routers and home Wi-Fi mesh systems, Wi-Fi hotspots, digital displays, broadband modems, Wi-Fi gateways, Wi-Fi range extenders, powerline adapters, and Wi-Fi network adapters; and provides value-added service offerings, including security and privacy, technical support, and parental controls. The NETGEAR for Business segment provides pro AV Solutions; pro routers; enterprise grade cloud managed or standalone access points; general purpose ethernet switches; NETGEAR Insight remote management software; and NETGEAR engage controller. It markets and sells its products through wholesale distributors, traditional and online retailers, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store. The company was incorporated in 1996 and is headquartered in San Jose, California.
About SUNation Energy
SUNation Energy Inc. is focused on local and regional solar, storage and energy services companies. Its portfolio of brands provides homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage and grid services. SUNation Energy Inc., formerly known as Pineapple Energy, is based in RONKONKOMA, N.Y.
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