SunPower Corporation (NASDAQ: SPWR) and JinkoSolar Holding Company Limited (NYSE:JKS) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for SunPower Corporation and JinkoSolar Holding Company Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunPower Corporation 1 10 3 0 2.14
JinkoSolar Holding Company Limited 3 2 1 0 1.67

SunPower Corporation presently has a consensus price target of $9.11, indicating a potential upside of 27.43%. JinkoSolar Holding Company Limited has a consensus price target of $20.50, indicating a potential downside of 18.75%. Given SunPower Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe SunPower Corporation is more favorable than JinkoSolar Holding Company Limited.

Insider and Institutional Ownership

28.8% of SunPower Corporation shares are held by institutional investors. Comparatively, 20.9% of JinkoSolar Holding Company Limited shares are held by institutional investors. 0.9% of SunPower Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

SunPower Corporation has a beta of 3.1, suggesting that its share price is 210% more volatile than the S&P 500. Comparatively, JinkoSolar Holding Company Limited has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.

Earnings and Valuation

This table compares SunPower Corporation and JinkoSolar Holding Company Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
SunPower Corporation $2.49 billion 0.40 -$24.89 million ($3.92) -1.82
JinkoSolar Holding Company Limited $2.07 billion 0.39 $81.16 million $6.05 4.17

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

Profitability

This table compares SunPower Corporation and JinkoSolar Holding Company Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunPower Corporation -21.84% -12.56% -2.88%
JinkoSolar Holding Company Limited 5.42% 7.88% 1.70%

Summary

SunPower Corporation beats JinkoSolar Holding Company Limited on 8 of the 13 factors compared between the two stocks.

About SunPower Corporation

SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation. The Company offers solar module technology and solar power systems that are designed to generate electricity over a system life over 25 years; Integrated Smart Energy software solutions that enable customers to manage and optimize the cooperation center of excellence (CCOE) measurement; Installation, construction, and ongoing maintenance and monitoring services; and financing solutions that provide customers a range of options for purchasing or leasing solar products at competitive energy rates. The Company offers a set of residential solutions that deliver value to homeowners and its dealer partners.

About JinkoSolar Holding Company Limited

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.

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