Critical Contrast: JA Solar Holdings, Co. (JASO) and Renesola (SOL)
JA Solar Holdings, Co. (NASDAQ: JASO) and Renesola (NYSE:SOL) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitabiliy, analyst recommendations, risk, institutional ownership and valuation.
Insider & Institutional Ownership
25.5% of JA Solar Holdings, Co. shares are owned by institutional investors. Comparatively, 12.6% of Renesola shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares JA Solar Holdings, Co. and Renesola’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|JA Solar Holdings, Co.||3.41%||7.73%||2.56%|
This is a breakdown of recent recommendations and price targets for JA Solar Holdings, Co. and Renesola, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JA Solar Holdings, Co.||1||2||0||0||1.67|
JA Solar Holdings, Co. currently has a consensus target price of $7.67, suggesting a potential upside of 20.36%. Renesola has a consensus target price of $3.00, suggesting a potential upside of 23.97%. Given Renesola’s higher possible upside, analysts clearly believe Renesola is more favorable than JA Solar Holdings, Co..
Earnings and Valuation
This table compares JA Solar Holdings, Co. and Renesola’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|JA Solar Holdings, Co.||$2.35 billion||0.13||$225.07 million||$1.61||3.96|
|Renesola||$825.75 million||0.06||$41.45 million||($3.17)||-0.76|
JA Solar Holdings, Co. has higher revenue and earnings than Renesola. Renesola is trading at a lower price-to-earnings ratio than JA Solar Holdings, Co., indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
JA Solar Holdings, Co. has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Renesola has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.
JA Solar Holdings, Co. beats Renesola on 9 of the 11 factors compared between the two stocks.
About JA Solar Holdings, Co.
JA Solar Holdings Co., Ltd. is a holding company. The Company designs, develops, manufactures and sells solar power products that convert sunlight into electricity for a range of uses. The Company is engaged in manufacturing and selling solar modules, as well as silicon wafer manufacturing. The Company operates through two segments, including manufacturing and solar projects. The manufacturing segment includes design, development and manufacture of photovoltaic (PV) products. The solar projects segment includes downstream solar projects, which are involved in electricity generation. The Company’s principal products consist of both monocrystalline and multicrystalline solar cells and solar modules. The Company sells its products primarily under JA Solar brand name, and also produces original equipment for manufacturers or customers. The Company is also engaged in the provision of solar product processing services and project development services.
ReneSola Ltd is a holding company. The Company is a brand and technology provider of energy-efficient products based in China. The Company’s segments include wafer sales, cell and module sales, and solar power projects. The wafer sales segment involves the manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The cell and module sales segment involves the manufacture and sales of solar cells and modules. The solar power projects segment involves sales of solar power projects and electricity generation revenue of certain project assets it owns and operates. The Company provides its customers with solar power products and processing services. It provides solar power products to a network of suppliers and customers, which includes manufacturers of solar cells and modules and distributors, installers and end users of solar modules. The Company manufactures solar-grade polysilicon, solar wafers, cells and modules.
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