Head to Head Analysis: Canadian Solar (NASDAQ:CSIQ) and Xinyi Solar (OTCMKTS:XNYIF)

Canadian Solar (NASDAQ:CSIQ) and Xinyi Solar (OTCMKTS:XNYIF) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Earnings & Valuation

This table compares Canadian Solar and Xinyi Solar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Solar	$5.99 billion	0.12	$36.05 million	($0.50)	-21.22
Xinyi Solar	N/A	N/A	N/A	N/A	N/A

Canadian Solar has higher revenue and earnings than Xinyi Solar.

Insider and Institutional Ownership

52.4% of Canadian Solar shares are held by institutional investors. 21.5% of Canadian Solar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Canadian Solar and Xinyi Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Solar	3	3	4	0	2.10
Xinyi Solar	1	0	0	0	1.00

Canadian Solar presently has a consensus target price of $14.74, suggesting a potential upside of 38.95%. Given Canadian Solar’s stronger consensus rating and higher probable upside, research analysts plainly believe Canadian Solar is more favorable than Xinyi Solar.

Profitability

This table compares Canadian Solar and Xinyi Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Solar	-0.18%	-4.34%	-1.27%
Xinyi Solar	N/A	N/A	N/A

Summary

Canadian Solar beats Xinyi Solar on 6 of the 9 factors compared between the two stocks.

About Canadian Solar

Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in in Asia, the Americas, Europe, and internationally. The company operates through two segments, CSI Solar and Recurrent Energy. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. It offers standard solar modules and battery storage solutions; solar system kits, such as inverters, racking systems, and other accessories; power electronic products; and engineering, procurement, and construction (EPC) services, as well as operates battery energy storage projects. The Recurrent Energy segment engages in the development, construction, maintenance, and sale of solar power and battery storage projects; and operation of solar power plants; and sale of electricity. This segment provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. It has a fleet of solar and battery energy storage plants in operation with an aggregate capacity of approximately 1,005 MWp and 600 MWh. It serves distributors, system integrators, project developers, and installers/EPC companies, as well as utility companies or grid operators, public utilities, licensed suppliers, corporate offtakers, and commercial, industrial or government end users. It sells its products primarily under its Canadian Solar brand name. Canadian Solar Inc. was incorporated in 2001 and is based in Guelph, Canada.

About Xinyi Solar

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People's Republic of China, rest of Asia, North America, Europe, and internationally. It operates in two segments, Sales of Solar Glass and Solar Farm Business. The company offers ultra-clear patterned solar glasses, back glasses, and anti-reflective coating solar glasses to photovoltaic module manufacturers. It also develops, operates, and manages solar farms; and provides engineering, procurement, and construction services. In addition, the company engages in the provision of solar power systems; and trading of solar glass products. Xinyi Solar Holdings Limited was founded in 2006 and is headquartered in Wuhu, the People's Republic of China.