JinkoSolar Holding Company Limited (NYSE: JKS) and SolarCity Corp (NASDAQ:SCTY) are both photovoltaic solar systems & equipment companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
JinkoSolar Holding Company Limited $3.08 billion 0.29 $263.10 million $1.61 17.08
SolarCity Corp N/A N/A N/A ($0.31) -65.71

JinkoSolar Holding Company Limited has higher revenue and earnings than SolarCity Corp. SolarCity Corp 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.

Analyst Recommendations

This is a summary of current recommendations for JinkoSolar Holding Company Limited and SolarCity Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JinkoSolar Holding Company Limited 3 2 0 0 1.40
SolarCity Corp 1 0 0 0 1.00

JinkoSolar Holding Company Limited currently has a consensus price target of $17.40, indicating a potential downside of 36.73%. SolarCity Corp has a consensus price target of $16.00, indicating a potential downside of 21.45%. Given SolarCity Corp’s higher possible upside, analysts plainly believe SolarCity Corp is more favorable than JinkoSolar Holding Company Limited.

Insider and Institutional Ownership

22.8% of JinkoSolar Holding Company Limited shares are held by institutional investors. Comparatively, 40.0% of SolarCity Corp shares are held by institutional investors. 36.4% of SolarCity Corp shares are held by company insiders. 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.

Profitability

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

Net Margins Return on Equity Return on Assets
JinkoSolar Holding Company Limited 5.42% 7.88% 1.70%
SolarCity Corp -112.36% 22.92% -10.69%

Summary

JinkoSolar Holding Company Limited beats SolarCity Corp on 5 of the 9 factors compared between the two stocks.

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.

About SolarCity Corp

SolarCity Corporation is a United States-based solar provider. The Company is primarily engaged in the design, manufacture, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. It operates through solar energy products and services segment. It integrates the sales, engineering, manufacturing, installation, monitoring, maintenance and financing of its distributed solar energy systems. It offers its customers the option to either purchase and own solar energy systems or to purchase the energy that its solar energy systems produce through various contractual arrangements. It installs solar energy system at its customer’s premises and charge the customer a monthly fee for the power that its system produces. Its products, services and technologies include solar energy systems, customer agreements, grid control/energy storage systems, Zep Solar mounting systems and software.

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