JinkoSolar Holding Company Limited (JKS) vs. Sunrun (RUN) Critical Survey

JinkoSolar Holding Company Limited (NYSE: JKS) and Sunrun (NASDAQ:RUN) are both small-cap photovoltaic solar systems & equipment companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
JinkoSolar Holding Company Limited 5.42% 7.88% 1.70%
Sunrun 18.79% 9.25% 2.69%

Insider & Institutional Ownership

22.8% of JinkoSolar Holding Company Limited shares are held by institutional investors. Comparatively, 74.9% of Sunrun shares are held by institutional investors. 24.1% of Sunrun shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares JinkoSolar Holding Company Limited and Sunrun’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
JinkoSolar Holding Company Limited $3.08 billion 0.29 $263.10 million $1.61 16.88
Sunrun $453.90 million 1.42 $91.68 million $0.88 6.88

JinkoSolar Holding Company Limited has higher revenue and earnings than Sunrun. Sunrun 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for JinkoSolar Holding Company Limited and Sunrun, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JinkoSolar Holding Company Limited 3 2 0 0 1.40
Sunrun 0 0 4 0 3.00

JinkoSolar Holding Company Limited currently has a consensus price target of $17.40, indicating a potential downside of 35.96%. Sunrun has a consensus price target of $9.00, indicating a potential upside of 48.76%. Given Sunrun’s stronger consensus rating and higher possible upside, analysts clearly believe Sunrun is more favorable than JinkoSolar Holding Company Limited.

Summary

Sunrun beats JinkoSolar Holding Company Limited on 9 of the 13 factors compared between the two stocks.

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.

About Sunrun

Sunrun Inc. is engaged in the design, development, installation, sale, ownership and maintenance of residential solar energy systems (Projects) in the United States. The Company is engaged in providing solar energy services and products to its customers. As of December 31, 2016, it operated a fleet of residential solar energy systems in the United States, with approximately 134,000 customers across 16 states, as well as the District of Columbia. The Company sells to homeowners over the phone, in the field through canvassing and in-home sales and through retail sales channels through its strategic partners. The solar service offerings are provided through its lease and power purchase agreements. It sells solar service offerings and installs solar energy systems for homeowners through its direct-to-consumer channel. It sells solar energy systems to homeowners, as well as related products, such as solar panels, inverters, racking systems and other solar-related equipment to resellers.

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