Shares of PowerSecure International, Inc. (NASDAQ:POWR) have taken investors on a fantastic ride this year. The Wake Forest, N.C.-based company has gone from lows near $4 per share in August to current highs near $16 per share. This remarkable run surely leaves investors wondering if now would be a good time to get out.
A record quarter
PowerSecure International, Inc. (NASDAQ:POWR) is coming off of a record first quarter. Here are some of the highlights:
– 35% year-over-year revenue growth
– 6% increase operating profit
– Record $206 million backlog
PowerSecure International, Inc. (NASDAQ:POWR) is touting its impressive record $206 million backlog — a record it expects to break next quarter — as its brightest point. PowerSecure isn’t the only company flaunting recurring revenue. Both SolarCity Corp (NASDAQ:SCTY), and SunPower Corporation (NASDAQ:SPWR) are also companies with impressive backlogs. How do they compare?
|Company||Market Cap||P/E Ratio||Revenue Backlog|
|PowerSecure||$290 million||66||$206 million|
|SolarCity||$2.83 billion||n/a||$1.22 billion|
|SunPower||$2.5 billion||n/a||$541 million|
To be clear, these companies are very different. But they are similar in the sense that their mission is to save customers money on their power bills. SolarCity Corp (NASDAQ:SCTY) and SunPower Corporation (NASDAQ:SPWR) do this through solar leasing. PowerSecure does this through a range of solutions, such as energy-efficient lighting, generators for peak power hours, and renewable energy.
There is also a difference in the revenue backlog itself. SolarCity and SunPower’s recurring lease revenue is very long term — over the next 20 years. In contrast, PowerSecure International, Inc. (NASDAQ:POWR)’s backlog is mostly short term. All but $7 million is expected to come in the next couple of years, which is why the company has a forward P/E of just 18.