Critical Analysis: JinkoSolar Holding Company Limited (JKS) versus First Solar (FSLR)
JinkoSolar Holding Company Limited (NYSE: JKS) and First Solar (NASDAQ:FSLR) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitabiliy, valuation, earnings, risk and dividends.
This is a summary of current ratings and recommmendations for JinkoSolar Holding Company Limited and First Solar, as reported 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, indicating a potential downside of 27.64%. First Solar has a consensus price target of $43.70, indicating a potential downside of 10.02%. Given First Solar’s stronger consensus rating and higher probable upside, analysts clearly believe First Solar is more favorable than JinkoSolar Holding Company Limited.
Risk & Volatility
JinkoSolar Holding Company Limited has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.
Valuation & Earnings
This table compares JinkoSolar Holding Company Limited and First Solar’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|JinkoSolar Holding Company Limited||$3.24 billion||0.29||$270.73 million||$7.12||4.08|
|First Solar||$2.57 billion||1.97||$296.64 million||($4.84)||-10.04|
First Solar has higher revenue, but lower earnings than JinkoSolar Holding Company Limited. First Solar 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.
This table compares JinkoSolar Holding Company Limited and First Solar’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 and Institutional Ownership
23.0% of JinkoSolar Holding Company Limited shares are held by institutional investors. Comparatively, 60.8% of First Solar shares are held by institutional investors. 0.4% of First Solar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
First Solar beats JinkoSolar Holding Company Limited on 9 of the 14 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.
First Solar Company Profile
First Solar, Inc. is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with a thin-film semiconductor technology. The Company also develops, designs, constructs and sells PV solar power systems that primarily use the modules it manufactures. It operates through two segments: components and systems. The components segment is engaged in the design, manufacture and sale of cadmium telluride (CdTe) solar modules, which convert sunlight into electricity. The systems segment includes the development, construction, operation and maintenance of PV solar power systems, which primarily use its solar modules. In addition, the Company provides operations and maintenance (O&M) services to system owners that use solar modules manufactured by it or by third-party manufacturers. The Company’s solar modules had an average rated power per module of approximately 114 watts, as of December 31, 2016.
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