Hanwha Q CELLS Co. (NASDAQ: HQCL) and JA Solar Holdings, Co. (NASDAQ:JASO) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Valuation & Earnings

This table compares Hanwha Q CELLS Co. and JA Solar Holdings, Co.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hanwha Q CELLS Co. $2.28 billion 0.28 $200.30 million $0.62 12.34
JA Solar Holdings, Co. $2.67 billion 0.14 $245.30 million $1.56 5.06

JA Solar Holdings, Co. has higher revenue and earnings than Hanwha Q CELLS Co.. JA Solar Holdings, Co. is trading at a lower price-to-earnings ratio than Hanwha Q CELLS Co., indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Hanwha Q CELLS Co. has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500. Comparatively, JA Solar Holdings, Co. has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

0.7% of Hanwha Q CELLS Co. shares are held by institutional investors. Comparatively, 26.0% of JA Solar Holdings, Co. shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Hanwha Q CELLS Co. and JA Solar Holdings, Co., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hanwha Q CELLS Co. 1 1 0 0 1.50
JA Solar Holdings, Co. 1 2 0 0 1.67

Hanwha Q CELLS Co. currently has a consensus target price of $7.00, indicating a potential downside of 8.50%. JA Solar Holdings, Co. has a consensus target price of $6.33, indicating a potential downside of 19.73%. Given Hanwha Q CELLS Co.’s higher probable upside, analysts clearly believe Hanwha Q CELLS Co. is more favorable than JA Solar Holdings, Co..

Profitability

This table compares Hanwha Q CELLS Co. and JA Solar Holdings, Co.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hanwha Q CELLS Co. 2.30% 11.55% 2.26%
JA Solar Holdings, Co. 2.89% 7.90% 2.61%

Summary

JA Solar Holdings, Co. beats Hanwha Q CELLS Co. on 7 of the 12 factors compared between the two stocks.

Hanwha Q CELLS Co. Company Profile

Hanwha Q CELLS Co., Ltd., formerly Hanwha SolarOne Co., Ltd., is a global solar energy company engaged in the manufacturing of solar modules, and the development and management of downstream solar farms. It manufactures a range of photo voltaic (PV) cells and PV modules at its manufacturing facilities in China and Malaysia using manufacturing process technologies, including those developed at its research and development facilities in Germany. It also engages in PV downstream businesses, which include developing solar power projects and providing engineering, procurement and construction services, and operation and management services. It develops and builds solar power projects incorporating its PV modules to sells them to third-party purchasers upon completion. Its principal products include PV modules, PV cells, silicon ingots and silicon wafers. It sells a range of PV modules, ranging from 250 watts to 340 watts in power output specification.

JA Solar Holdings, Co. Company Profile

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.

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