JinkoSolar Holding Company Limited (NYSE: JKS) and SolarEdge Technologies (NASDAQ:SEDG) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for JinkoSolar Holding Company Limited and SolarEdge Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JinkoSolar Holding Company Limited 2 1 3 0 2.17
SolarEdge Technologies 3 1 9 0 2.46

JinkoSolar Holding Company Limited presently has a consensus target price of $21.00, suggesting a potential downside of 25.64%. SolarEdge Technologies has a consensus target price of $23.33, suggesting a potential downside of 16.22%. Given SolarEdge Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe SolarEdge Technologies is more favorable than JinkoSolar Holding Company Limited.

Valuation and Earnings

This table compares JinkoSolar Holding Company Limited and SolarEdge Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
JinkoSolar Holding Company Limited $3.26 billion 0.28 $272.54 million $7.12 3.97
SolarEdge Technologies $481.19 million 2.44 $66.74 million $1.42 19.61

JinkoSolar Holding Company Limited has higher revenue and earnings than SolarEdge Technologies. JinkoSolar Holding Company Limited is trading at a lower price-to-earnings ratio than SolarEdge Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares JinkoSolar Holding Company Limited and SolarEdge Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JinkoSolar Holding Company Limited 6.92% 12.53% 2.46%
SolarEdge Technologies 12.64% 21.01% 14.15%

Risk & Volatility

JinkoSolar Holding Company Limited has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500. Comparatively, SolarEdge Technologies has a beta of 0.04, indicating that its stock price is 96% less volatile than the S&P 500.

Institutional and Insider Ownership

23.7% of JinkoSolar Holding Company Limited shares are held by institutional investors. Comparatively, 58.3% of SolarEdge Technologies shares are held by institutional investors. 16.4% of SolarEdge Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

SolarEdge Technologies beats JinkoSolar Holding Company Limited on 10 of the 14 factors compared between the two stocks.

JinkoSolar Holding Company Limited Company Profile

JinkoSolar Holding Co., Ltd. operates in the photovoltaic (PV) industry. The Company has built a vertically integrated solar power product value chain, from recovering silicon materials to manufacturing solar modules and solar power generation. The Company’s segments include the manufacturing segment and the solar power projects segment. The manufacturing segment comprises its vertically integrated solar power product manufacturing business, under which the Company manufactures silicon ingots, wafers, cells and solar modules. The solar power projects segment comprises the downstream solar power generation, construction and operation business, including power generation; engineering, procurement and construction (EPC), and connecting solar power projects to the grid, and operation and maintenance (O&M) of the solar power projects. The Company sells its solar modules under the JinkoSolar brand. Its services include solar system EPC and processing services.

SolarEdge Technologies Company Profile

SolarEdge Technologies, Inc. offers an inverter solution for a solar photovoltaic (PV) system. The Company’s products include SolarEdge Power Optimizer, SolarEdge Inverter, StorEdge Solutions and SolarEdge Monitoring Software. Its product roadmap consists of categories, including power optimizers, inverters, monitoring services, energy storage and smart energy management. The Company’s power optimizers provide module-level maximum power point (MPP) tracking and real-time adjustments of current and voltage to the optimal working point of each individual PV module. The Company’s solution consists of a direct current (DC) power optimizer, an inverter and a cloud-based monitoring platform that operates as a single integrated system.

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