Contrasting Spruce Power (NYSE:SPRU) & PPL (NYSE:PPL)

PPL (NYSE:PPL) and Spruce Power (NYSE:SPRU) are both utilities companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Earnings and Valuation

This table compares PPL and Spruce Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PPL	$8.31 billion	2.87	$740.00 million	$1.12	28.83
Spruce Power	$79.86 million	0.63	-$65.83 million	($5.06)	-0.54

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PPL	9.95%	9.20%	3.25%
Spruce Power	-121.98%	-23.98%	-5.48%

Institutional & Insider Ownership

77.0% of PPL shares are owned by institutional investors. Comparatively, 20.8% of Spruce Power shares are owned by institutional investors. 0.2% of PPL shares are owned by company insiders. Comparatively, 9.6% of Spruce Power shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

PPL has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Spruce Power has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for PPL and Spruce Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PPL	0	2	8	1	2.91
Spruce Power	0	0	0	0	0.00

PPL presently has a consensus target price of $34.09, suggesting a potential upside of 5.58%. Given PPL’s stronger consensus rating and higher probable upside, research analysts plainly believe PPL is more favorable than Spruce Power.

Summary

PPL beats Spruce Power on 12 of the 14 factors compared between the two stocks.

About PPL

PPL Corporation, an energy company, focuses on providing electricity and natural gas to approximately 3.6 million customers in the United States. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky. PPL Corporation was founded in 1920 and is headquartered in Allentown, Pennsylvania.

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.