Trina Solar Limited (NYSE: TSL) and Renesola (NYSE:SOL) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Risk and Volatility

Trina Solar Limited has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Renesola has a beta of 2.24, meaning that its share price is 124% more volatile than the S&P 500.

Institutional & Insider Ownership

61.4% of Trina Solar Limited shares are held by institutional investors. Comparatively, 14.5% of Renesola shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Trina Solar Limited and Renesola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trina Solar Limited 3.48% N/A N/A
Renesola -7.71% -81.60% -5.36%

Valuation & Earnings

This table compares Trina Solar Limited and Renesola’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Trina Solar Limited N/A N/A N/A $1.43 8.07
Renesola $825.75 million 0.06 $41.45 million ($3.17) -0.80

Renesola has higher revenue and earnings than Trina Solar Limited. Renesola is trading at a lower price-to-earnings ratio than Trina Solar Limited, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Trina Solar Limited and Renesola, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trina Solar Limited 1 0 0 0 1.00
Renesola 1 1 0 0 1.50

Trina Solar Limited currently has a consensus target price of $15.00, suggesting a potential upside of 29.98%. Renesola has a consensus target price of $3.00, suggesting a potential upside of 18.11%. Given Trina Solar Limited’s higher probable upside, equities research analysts plainly believe Trina Solar Limited is more favorable than Renesola.

Summary

Trina Solar Limited beats Renesola on 6 of the 9 factors compared between the two stocks.

Trina Solar Limited Company Profile

Trina Solar Limited is an integrated solar power products manufacturer and solar system developer based in China with a global distribution network. The Company has integrated the manufacturing of ingots, wafers and solar cells for use in its photovoltaic (PV) module production. Its PV modules provide electric power for residential, commercial, industrial and other applications. It also develops, designs, constructs, operates and sells solar power projects that primarily use the solar modules it manufactures. It operates through two segments: manufacturing segment and the solar power projects segment. The manufacturing segment designs, develops, manufactures and sells PV modules, and integrates the manufacturing of ingots, wafers and solar cells for use in its PV module production. The solar power projects segment designs, constructs, operates and sells solar power projects in China, the United Kingdom, the United States and other European and Asian countries.

Renesola Company Profile

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 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.

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