Financial Comparison: JinkoSolar Holding Company Limited (JKS) and DAQO New Energy Corp. (DQ)
JinkoSolar Holding Company Limited (NYSE: JKS) and DAQO New Energy Corp. (NYSE:DQ) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
This table compares JinkoSolar Holding Company Limited and DAQO New Energy Corp.’s 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%|
|DAQO New Energy Corp.||19.35%||18.90%||8.18%|
Insider & Institutional Ownership
23.7% of JinkoSolar Holding Company Limited shares are owned by institutional investors. Comparatively, 31.7% of DAQO New Energy Corp. shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
JinkoSolar Holding Company Limited has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, DAQO New Energy Corp. has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for JinkoSolar Holding Company Limited and DAQO New Energy Corp., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JinkoSolar Holding Company Limited||2||2||2||0||2.00|
|DAQO New Energy Corp.||0||0||2||0||3.00|
JinkoSolar Holding Company Limited currently has a consensus target price of $21.00, indicating a potential downside of 11.39%. DAQO New Energy Corp. has a consensus target price of $37.50, indicating a potential upside of 53.00%. Given DAQO New Energy Corp.’s stronger consensus rating and higher probable upside, analysts plainly believe DAQO New Energy Corp. is more favorable than JinkoSolar Holding Company Limited.
Valuation and Earnings
This table compares JinkoSolar Holding Company Limited and DAQO New Energy Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|JinkoSolar Holding Company Limited||$3.28 billion||0.23||$274.26 million||$7.12||3.33|
|DAQO New Energy Corp.||$260.21 million||0.99||$116.94 million||$4.72||5.19|
JinkoSolar Holding Company Limited has higher revenue and earnings than DAQO New Energy Corp.. JinkoSolar Holding Company Limited is trading at a lower price-to-earnings ratio than DAQO New Energy Corp., indicating that it is currently the more affordable of the two stocks.
DAQO New Energy Corp. beats JinkoSolar Holding Company Limited on 8 of the 12 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.
DAQO New Energy Corp. Company Profile
Daqo New Energy Corp. is a polysilicon manufacturer. The Company utilizes the chemical vapor deposition process, or the modified Siemens process, to produce polysilicon. The Company’s segments include Polysilicon and Wafer. The Company manufactures and sells polysilicon to photovoltaic product manufacturers, whereby the polysilicon is processed into ingots, wafers, cells and modules for solar power solutions. The Company offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling and solidification needs. The Company offers wafers through its downstream photovoltaic product manufacturing business. The Company also provides wafer original equipment manufacturer (OEM) service to external customers through tolling agreements by processing polysilicon to produce ingot and wafer. Its annual capacity for polysilicon is approximately 12,150 metric tons (MT) in Xinjiang. The Company’s wafer manufacturing annual capacity is approximately 90 million pieces.
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