Head to Head Review: Yingli Green Energy (YGE) & JinkoSolar (JKS)

Yingli Green Energy (NYSE: JKS) and JinkoSolar (NYSE:JKS) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

0.5% of Yingli Green Energy shares are owned by institutional investors. Comparatively, 25.4% of JinkoSolar shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Yingli Green Energy and JinkoSolar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yingli Green Energy -39.90% N/A -9.37%
JinkoSolar 0.58% 1.89% 0.45%

Valuation and Earnings

This table compares Yingli Green Energy and JinkoSolar’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Yingli Green Energy $1.29 billion 0.02 -$509.97 million ($9.50) -0.15
JinkoSolar $4.07 billion 0.09 $21.77 million $0.68 18.26

JinkoSolar has higher revenue and earnings than Yingli Green Energy. Yingli Green Energy is trading at a lower price-to-earnings ratio than JinkoSolar, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Yingli Green Energy has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Yingli Green Energy and JinkoSolar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yingli Green Energy 1 0 0 0 1.00
JinkoSolar 4 3 1 0 1.63

Yingli Green Energy currently has a consensus target price of $1.13, suggesting a potential downside of 21.33%. JinkoSolar has a consensus target price of $15.80, suggesting a potential upside of 27.21%. Given JinkoSolar’s stronger consensus rating and higher possible upside, analysts clearly believe JinkoSolar is more favorable than Yingli Green Energy.

Summary

JinkoSolar beats Yingli Green Energy on 12 of the 13 factors compared between the two stocks.

Yingli Green Energy Company Profile

Yingli Green Energy Holding Company Limited, together with its subsidiaries, designs, develops, manufactures, assembles, sells, and installs photovoltaic (PV) products. The company offers polysilicon ingots and blocks, polysilicon wafers, PV cells, PV modules, and integrated PV systems; and develops and operates solar projects. It is also involved in the research, manufacture, sale, and installation of renewable energy products; marketing and sale of PV products and related accessories; and import and export trading activities, as well as invests in renewable energy projects. The company primarily sells its PV modules to distributors, wholesalers, power plant developers and operators, and PV system integrators under the Yingli and Yingli Solar brands in the People's Republic of China, Japan, India, the United States, England, Turkey, France, Germany, England, and internationally. Yingli Green Energy Holding Company Limited was founded in 1998 and is headquartered in Baoding, the People's Republic of China.

JinkoSolar Company Profile

JinkoSolar Holding Co., Ltd., together with its subsidiaries, engages in the design, development, production, and marketing of photovoltaic products in the People's Republic of China and internationally. The company offers solar modules, silicon wafers, solar cells, recovered silicon materials, and silicon ingots. It also provides solar system integration services; and develops commercial solar power projects. The company sells its products to distributors, project developers, and system integrators under the JinkoSolar brand, as well as on an original equipment manufacturer basis. JinkoSolar Holding Co., Ltd. was founded in 2006 and is based in Shangrao, the People's Republic of China.

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