Critical Review: First Solar (NASDAQ:FSLR) & Solar Thin Films (OTCMKTS:SLTZ)

Solar Thin Films (OTCMKTS:SLTZ) and First Solar (NASDAQ:FSLR) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Valuation and Earnings

This table compares Solar Thin Films and First Solar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solar Thin Films	N/A	N/A	N/A	N/A	N/A
First Solar	$4.21 billion	6.95	$1.29 billion	$13.02	20.91

First Solar has higher revenue and earnings than Solar Thin Films.

Institutional and Insider Ownership

92.1% of First Solar shares are owned by institutional investors. 12.0% of Solar Thin Films shares are owned by insiders. Comparatively, 0.5% of First Solar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Solar Thin Films and First Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solar Thin Films	N/A	N/A	N/A
First Solar	27.73%	16.61%	11.08%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Solar Thin Films and First Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solar Thin Films	0	0	0	0	0.00
First Solar	0	6	27	2	2.89

First Solar has a consensus price target of $271.27, indicating a potential downside of 0.37%. Given Solar Thin Films’ higher possible upside, equities research analysts plainly believe Solar Thin Films is more favorable than First Solar.

Summary

First Solar beats Solar Thin Films on 8 of the 10 factors compared between the two stocks.

About Solar Thin Films

Solar Thin Films, Inc. designs, develops, manufactures, and installs thin-film amorphous silicon photovoltaic manufacturing equipment used in plants that produce photovoltaic thin-film a-Si solar panels or modules. The company serves businesses and investment partnerships engaged in the production of photovoltaic thin-film modules; and corporations and governments involved in the construction of solar power plants principally in the United States, Europe, Russia, Ukraine, and Asia. Solar Thin Films, Inc. was founded in 1993 and is based in New York, New York.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.