Analyzing SolarCity (SCTY) and JinkoSolar (JKS)
SolarCity (NASDAQ: SCTY) and JinkoSolar (NYSE:JKS) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.
This table compares SolarCity and JinkoSolar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for SolarCity and JinkoSolar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
JinkoSolar has a consensus target price of $17.40, indicating a potential downside of 28.69%. Given JinkoSolar’s higher possible upside, analysts plainly believe JinkoSolar is more favorable than SolarCity.
Institutional & Insider Ownership
40.0% of SolarCity shares are owned by institutional investors. Comparatively, 21.3% of JinkoSolar shares are owned by institutional investors. 36.4% of SolarCity shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
This table compares SolarCity and JinkoSolar’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|JinkoSolar||$3.08 billion||0.26||$263.10 million||$0.58||42.07|
JinkoSolar has higher revenue and earnings than SolarCity. SolarCity is trading at a lower price-to-earnings ratio than JinkoSolar, indicating that it is currently the more affordable of the two stocks.
JinkoSolar beats SolarCity on 5 of the 8 factors compared between the two stocks.
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.
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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