Critical Comparison: SolarCity Corp (SCTY) vs. JinkoSolar Holding Company Limited (JKS)

SolarCity Corp (NASDAQ: SCTY) and JinkoSolar Holding Company Limited (NYSE:JKS) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Earnings & Valuation

This table compares SolarCity Corp and JinkoSolar Holding Company Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
SolarCity Corp N/A N/A N/A ($0.31) -65.71
JinkoSolar Holding Company Limited $3.08 billion 0.27 $263.10 million $1.61 16.09

JinkoSolar Holding Company Limited has higher revenue and earnings than SolarCity Corp. SolarCity Corp 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.

Insider and Institutional Ownership

40.0% of SolarCity Corp shares are owned by institutional investors. Comparatively, 23.1% of JinkoSolar Holding Company Limited shares are owned by institutional investors. 36.4% of SolarCity Corp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SolarCity Corp and JinkoSolar Holding Company Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SolarCity Corp -112.36% 22.92% -10.69%
JinkoSolar Holding Company Limited 5.42% 7.88% 1.70%

Analyst Ratings

This is a breakdown of recent ratings for SolarCity Corp and JinkoSolar Holding Company Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SolarCity Corp 0 0 0 0 N/A
JinkoSolar Holding Company Limited 3 2 0 0 1.40

JinkoSolar Holding Company Limited has a consensus price target of $17.40, suggesting a potential downside of 32.84%. Given JinkoSolar Holding Company Limited’s higher possible upside, analysts plainly believe JinkoSolar Holding Company Limited is more favorable than SolarCity Corp.

Summary

JinkoSolar Holding Company Limited beats SolarCity Corp on 5 of the 8 factors compared between the two stocks.

About SolarCity Corp

SolarCity Corporation is a United States-based solar provider. The Company is primarily engaged in the design, manufacture, installation and sale or lease of solar energy systems to residential and commercial customers, or sale of electricity generated by solar energy systems to customers. It operates through solar energy products and services segment. It integrates the sales, engineering, manufacturing, installation, monitoring, maintenance and financing of its distributed solar energy systems. It offers its customers the option to either purchase and own solar energy systems or to purchase the energy that its solar energy systems produce through various contractual arrangements. It installs solar energy system at its customer’s premises and charge the customer a monthly fee for the power that its system produces. Its products, services and technologies include solar energy systems, customer agreements, grid control/energy storage systems, Zep Solar mounting systems and software.

About JinkoSolar Holding Company Limited

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.

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