Contrasting Lear (NYSE:LEA) & Spruce Power (NYSE:SPRU)

Spruce Power (NYSE:SPRUGet Rating) and Lear (NYSE:LEAGet Rating) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Risk and Volatility

Spruce Power has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Lear has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Spruce Power and Lear, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spruce Power 0 0 0 0 N/A
Lear 0 7 4 0 2.36

Lear has a consensus price target of $155.69, suggesting a potential upside of 17.51%. Given Lear’s higher possible upside, analysts plainly believe Lear is more favorable than Spruce Power.

Profitability

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

Net Margins Return on Equity Return on Assets
Spruce Power -274.28% -14.41% -7.59%
Lear 1.57% 11.22% 3.86%

Earnings and Valuation

This table compares Spruce Power and Lear’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spruce Power $23.19 million 4.59 -$93.93 million ($0.65) -1.11
Lear $20.89 billion 0.37 $327.70 million $5.47 24.22

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

Institutional & Insider Ownership

17.3% of Spruce Power shares are held by institutional investors. Comparatively, 99.6% of Lear shares are held by institutional investors. 15.3% of Spruce Power shares are held by company insiders. Comparatively, 0.7% of Lear shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Lear beats Spruce Power on 11 of the 13 factors compared between the two stocks.

About Spruce Power

(Get Rating)

XL Fleet Corp. provides fleet electrification solutions for commercial vehicles in North America. Its products include hybrid electric drive systems are comprised of an electric motor that is mounted onto the vehicle's drive shaft, an inverter motor controller, and a lithium-ion battery pack to store energy to be used for propulsion; plug-in hybrid electric drive system, which are fitted to vehicles. In addition, the company offers vehicle electrification and infrastructure solutions, and charging stations. It serves end-use customer base comprising Fortune 500 corporate enterprises, public utilities, and various municipalities. The company was incorporated in 2009 and is headquartered in Boston, Massachusetts.

About Lear

(Get Rating)

Lear Corp. engages in the design, manufacture and supply of automotive seats, electrical distribution systems and electronic modules, as well as related sub-systems, components, and software. It operates through the following segments: Seating and E-Systems. The Seating segment consists of the design, engineering, just-in-time assembly and delivery of complete seat systems, as well as the manufacture of all major seat components, including seat covers and surface materials such as leather and fabric, seat structures and mechanisms, seat foam and headrests. The E-System segment engages in the design, development, engineering and manufacture of electrical distribution systems, as well as electronic control modules, electrification products, connectivity products and software solutions for the cloud, vehicles and mobile devices. The company was founded in 1917 and is headquartered in Southfield, MI.

Receive News & Ratings for Spruce Power Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Spruce Power and related companies with MarketBeat.com's FREE daily email newsletter.