Critical Review: Summer Energy (OTCMKTS:SUME) and Altus Power (NYSE:AMPS)

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Altus Power	$155.16 million	5.05	-$9.35 million	$0.22	22.16
Summer Energy	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Altus Power and Summer Energy, as provided by MarketBeat.com.

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

Altus Power currently has a consensus price target of $5.06, suggesting a potential upside of 3.85%. Given Altus Power’s stronger consensus rating and higher probable upside, analysts clearly believe Altus Power is more favorable than Summer Energy.

Profitability

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

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

Institutional & Insider Ownership

46.6% of Altus Power shares are held by institutional investors. 24.3% of Altus Power shares are held by company insiders. Comparatively, 56.8% of Summer Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

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

Summary

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

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.

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.