Microvast vs. Sunrun: Which Clean Energy Stock Is Stronger Now?

Both Microvast MVST and Sunrun RUN are solid players in the clean energy domain. MVST manufactures lithium-ion batteries for electric vehicles and energy storage. On the other hand, RUN is an eminent solar and battery storage provider. Both these companies target the surging demand for sustainable power and electrification solutions.Let us delve deeper and find out which stock offers better growth prospects for investors interested in the clean energy space.The Case for MicrovastMicrovast’s performance during the June quarter highlights the robust demand for its products in the Asia-Pacific (APAC) and the United States. Banking on this continued demand, the company improved its top line by 9.2% year over year. Even revenues grew 24% year over year in 2024, fueled by the demand for electrification on a global scale.The company successfully expanded its presence across various regions. The Europe, Middle East, and Africa region contributed to 43% of revenues, a 31% increase over the past six months. Trends were similarly observed in APAC and the U.S. region. While the APAC region’s share grew from 43% in the second quarter of 2024 to 52% in the most recent quarter, the U.S. increased from 2% to 5% during the same period.Microvast is improving its reach in China, its primary market. The current Huzhou Phase 3.2 expansion plays a vital role in this region’s growth by expanding manufacturing capacity by 2GWh in Huzhou. This effort is aimed at developing a high-energy nickel-manganese-cobalt 53.5 Ah cell technology. This plan played a significant role in contributing to top-line growth during the June quarter, and we expect to make an exponential contribution as the demand within the EV market surges.MVST has not barred itself from exploring different avenues in the market. By partnering with Evoy, the company has made significant strides in making its mark within the electric boat market, which is expected to register a CAGR of 13.5% from 2025 to 2030, per Grand View Research. Microvast’s MV-I high-power battery is the hero product in this segment, boasting an energy density of up to 180 Wh/kg, which can be integrated into Evoy's leisure boat product line.The Case for SunrunSunrun witnessed an uptrend in its top line during the second quarter of 2025, with the metric increasing 9% year over year to $569.3 million. An 18% growth in revenues from its customer agreements, which is key to its Solar-as-a-Service model, fueled the top line. The company also holds $1 billion in cash and cash equivalents, which is significantly higher than its current debt of $279 million, as of the June quarter. This highlights the company's strong liquidity position, which is sufficient to make frequent investments that support growth and profitability. Management was optimistic about strong sales momentum and the value proposition of its offerings, thus hiked the contracted net value creation to $1-$1.3 billion from the preceding quarter’s $650-$850 million.RUN has shifted its strategic focus toward a storage-centric approach, which is the key driver of its current growth and future potential. During the second quarter of 2025, the storage attachment rate reached 70%, up from 54% in the year-ago quarter. Customer additions with storage increased 50% during the quarter. This highlights the strengthened customer preference for integrated solar and battery solutions.The storage-solar bundle is not only boosting Sunrun’s customer value but also propelling its ability to participate in virtual power plants. In 2024, more than 20,000 customers participated in 16 VPP programs across nine states and territories, providing a combined instantaneous peak of nearly 80 megawatts (a capacity that exceeds traditional fossil-fuel plants). These initiatives play a vital role in RUN’s plan to evolve from a solar installer into a distributed energy provider.Sunrun’s market expansion strategy is engraved in its ability to form strong partnerships. RUN and Tesla Electric partnered to provide a home energy plan in Texas. This collaboration will enable Tesla Electric to offer a low, fixed electricity rate and competitive sellback rates for excess solar energy sent back to the grid. Furthermore, Sunrun’s solar production and efficient battery management will provide maximum value to customers and outage protection.How Do Estimates Compare for MVST & RUN?The Zacks Consensus Estimate for Microvast’s 2025 sales is pegged at $462.3 million, hinting at 21.7% year-over-year growth. The consensus estimate for earnings is pegged at 19 cents per share against a loss of 27 cents reported in the year-ago quarter. One estimate for 2025 has moved north in the past 60 days, with no southward revisions. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Sunrun’s 2025 sales is set at $2.3 billion, indicating 11.2% year-over-year growth. The consensus estimate for earnings is pegged at 71 cents per share, suggesting a 46.6% year-over-year decline. Four estimates for 2025 have moved north in the past 60 days, with no southward revisions. Image Source: Zacks Investment Research MVST Trades Cheaper Than RUNMicrovast is currently trading at a forward 12-month P/E ratio of 15.66X, which is higher than the 12-month median of 12.52X. Sunrun is trading at 25.61X, which is marginally higher than the 12-month median. Microvast is trading at a discount compared to Sunrun. Image Source: Zacks Investment Research VerdictBoth Microvast and Sunrun are strong contenders. MVST’s market expansion strategy has been successful at spreading wings across different geographies. Growth across China, driven by the expansion of manufacturing capacity in Huzhou, looks promising. The partnership with Evoy provides MVST with significant leverage to operate within the electric boat market, capturing and diversifying its market share.RUN, on the other hand, is utilizing its Solar-as-a-Service business model to drive its revenues. The company’s storage-first strategy highlights a strong consumer preference. Partnership with Tesla Electric is a solid way to expand RUN’s offerings across the United States.Both these stocks hold a strong top-line prospect; however, the bottom-line outlook is stronger in the case of Microvast. Having said that, MVST trades at a lower price than RUN, and this comparatively discounted valuation makes Microvast a more attractive buy.MVST and RUN currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sunrun Inc. (RUN): Free Stock Analysis Report Microvast Holdings, Inc. (MVST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks