The year 2020 witnessed an unprecedented rise of renewable energy stocks and this rally is likely to continue in 2021. Global organizations like the United Nations have long advocated curtailing carbon footprint to combat climate change. The Canadian federal government has also adopted the same trend and pledged to achieve zero carbon emission by 2050.
Amid these developments, some renewable energy firms outperformed the mainstream energy companies last year. Eco-friendly stocks such as Solar Alliance Energy and Greenlane Renewables have recently catapulted into investors’ attentions over their future potential growth prospect.
Let us look at the fundamentals of these two stocks from the Toronto Stock Exchange Venture (TSXV):
Solar Alliance Energy Inc (TSXV: SOLR)
Current Stock Price: C$ 0.385
The Vancouver-based semiconductor company operates in rooftop solar systems. The company bagged a contract worth US$ 60 million on January 4 from Green Data Center Real Estate to build a 56-megawatt solar project situated in Illinois, United States.
Shares of the solar energy company soared over 60 per cent on Monday, January 18. The scrips have a 10-day average trading volume of 9 million.
In the last three months, the renewable stock has zoomed over 1,183 per cent. It is among the top TMX’s volume actives and delivers current return on equity of 24.13 per cent.
The solar panel installer recorded revenue of C$ 530,385 in the third quarter of 2020, an increase of 37 per cent against C$ 388,132 in Q3 2019.
Greenlane Renewables Inc. (TSXV: GRN)
Current Stock Price: C$ 2.42
The industrial firm offers biogas upgrading systems across North America and Europe. In the last three months, the stock has advanced by 297 per cent, thereby making it to TMX’s Rising Stars and top industrial companies.
Greenlane Renewables’ market cap stands at C$ 277.5 million, and its stock has a price-to-earnings ratio of 14.235. The renewable stock has earnings per share of C$ 0.05 and a debt-to-equity ratio of 0.36.
The company generated revenue of C$ 6.5 million in the third quarter ended September 30, 2020, a 30 per cent year-over-year (YoY) growth compared to C$ 5.0 million reported in Q3 2020.