Analyzing Solera (SLH) & EnerNOC (ENOC)

Solera (NYSE: SLH) and EnerNOC (NASDAQ:ENOC) are both technology companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Insider and Institutional Ownership

49.7% of EnerNOC shares are owned by institutional investors. 13.4% of EnerNOC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Solera and EnerNOC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solera N/A N/A N/A ($1.98) -28.20
EnerNOC N/A N/A N/A ($1.50) -5.10

Solera is trading at a lower price-to-earnings ratio than EnerNOC, indicating that it is currently the more affordable of the two stocks.

Dividends

Solera pays an annual dividend of $0.90 per share and has a dividend yield of 1.6%. EnerNOC does not pay a dividend. Solera pays out -45.5% of its earnings in the form of a dividend. EnerNOC has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Solera and EnerNOC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera 0 0 0 0 N/A
EnerNOC 0 4 0 0 2.00

EnerNOC has a consensus target price of $8.56, suggesting a potential upside of 11.85%. Given EnerNOC’s higher probable upside, analysts plainly believe EnerNOC is more favorable than Solera.

Profitability

This table compares Solera and EnerNOC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solera 18.15% N/A 6.01%
EnerNOC -66.80% -160.15% -42.76%

Volatility and Risk

Solera has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, EnerNOC has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500.

Summary

EnerNOC beats Solera on 6 of the 11 factors compared between the two stocks.

Solera Company Profile

Solera Holdings, Inc. is a United States-based company, which is a provider of risk and asset management software and services to the automotive and property marketplace, including the global property and casualty (P&C) insurance industry. The Company is engaged in cognitive technologies for the automotive and home ownership ecosystems. The Company’s solutions and services bring together consumers, insurers, banks, governments, manufacturers, owners, wholesalers, retailers, and service and repair industries, into digitally unified ecosystems that enable the management, protection and security of assets throughout their lifecycles. The Company’s product platforms include Audatex, AutoPoint, CAP/HPI, Digidentity, Explore Data, Hollander, Identifix, Inpart and TitleTec, as well as the company’s application, Digital Garage. The Company processes over 240 million transactions annually for approximately 200,000 partners in approximately 80 countries.

EnerNOC Company Profile

EnerNOC, Inc. is a provider of energy intelligence software (EIS) and demand response solutions. The Company’s EIS provides enterprise solutions, utility solutions and energy procurement solutions. The Company’s EIS offers enterprise customers with a Software-as-a-Service (SaaS) solutions with various areas of functionalities, including energy cost visualization, budgets, forecasts and accruals; project tracking, and demand management. Its EIS provides its utility customers with a SaaS-based customer engagement platform, which collects and processes data and enables its utility customers to provide personalized communication and recommendations to their customers. Its EIS includes an energy procurement platform that helps its enterprise and utility customers. Its procurement platform offers its enterprise and utility customers with features, such as energy contracts management. Its technology includes over two components: its EIS platform and Network Operations Center (NOC).

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