SPI Energy (NASDAQ:SPI – Get Free Report) and JinkoSolar (NYSE:JKS – Get Free Report) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
SPI Energy has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
Profitability
This table compares SPI Energy and JinkoSolar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SPI Energy | -11.77% | -167.64% | -9.56% |
| JinkoSolar | 2.89% | 11.85% | 3.00% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SPI Energy | $177.52 million | 0.09 | -$33.42 million | ($0.88) | -0.56 |
| JinkoSolar | $16.72 billion | 0.07 | $485.56 million | $7.85 | 2.76 |
JinkoSolar has higher revenue and earnings than SPI Energy. SPI Energy is trading at a lower price-to-earnings ratio than JinkoSolar, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
1.7% of SPI Energy shares are owned by institutional investors. Comparatively, 35.8% of JinkoSolar shares are owned by institutional investors. 24.6% of SPI Energy shares are owned by company insiders. Comparatively, 19.8% of JinkoSolar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for SPI Energy and JinkoSolar, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SPI Energy | 0 | 0 | 1 | 0 | 3.00 |
| JinkoSolar | 1 | 5 | 0 | 0 | 1.83 |
SPI Energy presently has a consensus target price of $6.00, suggesting a potential upside of 1,117.53%. JinkoSolar has a consensus target price of $26.60, suggesting a potential upside of 22.64%. Given SPI Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe SPI Energy is more favorable than JinkoSolar.
Summary
JinkoSolar beats SPI Energy on 8 of the 14 factors compared between the two stocks.
About SPI Energy
SPI Energy Co., Ltd. provides photovoltaic and electric vehicle (EV) solutions for business, residential, government, and utility customers and investors in Australia, Japan, Italy, the United States, the United Kingdom, and Greece. The company offers engineering, procurement, and construction services to independent power developers and producers, and commercial and industrial companies. It also develops, owns, and operates solar projects that sell electricity to power companies and other electricity off-takers, including government-owned utility companies. In addition, the company sells self-assembled solar modules, forklifts, pre-development solar projects, component and charging stations, as well as offers shipping, delivery, engineering, and maintenance services. As of April, 2022, it owned and operated 17.51 megawatts of solar projects. The company is headquartered in Sacramento, California.
About JinkoSolar
JinkoSolar Holding Co., Ltd., together with its subsidiaries, engages in the design, development, production, and marketing of photovoltaic products. 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, system integrators, and manufacturers of solar power products under the JinkoSolar brand. As of December 31, 2022, it had an integrated annual capacity of 65 gigawatts (GW) for mono wafers; 55 GW for solar cells; and 70 GW for solar modules. The company has operations in the People's Republic of China, the United States, Mexico, Australia, Japan, United Arab Emirates, Turkey, Jordan, Vietnam, Egypt, Spain, and Germany. JinkoSolar Holding Co., Ltd. was founded in 2006 and is headquartered in Shangrao, the People's Republic of China.
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