JinkoSolar Holding Company Limited (JKS) and Enphase Energy (NASDAQ:ENPH) Critical Analysis
JinkoSolar Holding Company Limited (NYSE: JKS) and Enphase Energy (NASDAQ:ENPH) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitabiliy, institutional ownership, risk, earnings, dividends and analyst recommendations.
This is a breakdown of recent recommendations and price targets for JinkoSolar Holding Company Limited and Enphase Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|JinkoSolar Holding Company Limited||2||1||3||0||2.17|
JinkoSolar Holding Company Limited currently has a consensus price target of $21.00, suggesting a potential downside of 23.25%. Enphase Energy has a consensus price target of $2.08, suggesting a potential upside of 141.32%. Given Enphase Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Enphase Energy is more favorable than JinkoSolar Holding Company Limited.
This table compares JinkoSolar Holding Company Limited and Enphase Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|JinkoSolar Holding Company Limited||6.92%||12.53%||2.46%|
Insider & Institutional Ownership
20.8% of JinkoSolar Holding Company Limited shares are owned by institutional investors. Comparatively, 26.2% of Enphase Energy shares are owned by institutional investors. 17.4% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares JinkoSolar Holding Company Limited and Enphase Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|JinkoSolar Holding Company Limited||$3.23 billion||0.27||$269.59 million||$7.12||3.84|
|Enphase Energy||$313.22 million||0.23||-$44.98 million||($1.27)||-0.68|
JinkoSolar Holding Company Limited has higher revenue and earnings than Enphase Energy. Enphase Energy 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.
Risk & Volatility
JinkoSolar Holding Company Limited has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.
JinkoSolar Holding Company Limited beats Enphase Energy on 8 of the 12 factors compared between the two stocks.
JinkoSolar Holding Company Limited Company Profile
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.
Enphase Energy Company Profile
Enphase Energy, Inc. is a provider of energy management solutions. The Company is engaged in designing, developing, manufacturing and selling microinverter systems for the solar photovoltaic industry. Its semiconductor-based microinverter system converts direct current (DC) electricity to alternating current (AC) electricity. Its microinverter system consists of three components: Enphase microinverters, an Envoy gateway and Enlighten cloud-based software. Its Enphase microinverters provide power conversion at the individual solar module level by a digital architecture that incorporates custom application specific integrated circuits (ASIC), specialized power electronics devices, and an embedded software subsystem. Envoy bi-directional communications gateway provides collecting and sending data to Enlighten software. Enlighten cloud-based software provides the capabilities to remotely monitor, manage, and maintain an individual system or a fleet of systems.
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