Analyzing JinkoSolar (NYSE:JKS) and Applied Optoelectronics (NYSE:AAOI)
JinkoSolar (NYSE:JKS) and Applied Optoelectronics (NASDAQ:AAOI) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
This table compares JinkoSolar and Applied Optoelectronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
JinkoSolar has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, Applied Optoelectronics has a beta of 2.17, meaning that its stock price is 117% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for JinkoSolar and Applied Optoelectronics, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
JinkoSolar currently has a consensus target price of $14.25, indicating a potential downside of 39.54%. Applied Optoelectronics has a consensus target price of $20.67, indicating a potential upside of 126.61%. Given Applied Optoelectronics’ higher possible upside, analysts plainly believe Applied Optoelectronics is more favorable than JinkoSolar.
Valuation and Earnings
This table compares JinkoSolar and Applied Optoelectronics’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|JinkoSolar||$3.64 billion||0.18||$59.12 million||$1.52||15.51|
|Applied Optoelectronics||$267.46 million||0.68||-$2.15 million||$0.53||17.21|
JinkoSolar has higher revenue and earnings than Applied Optoelectronics. JinkoSolar is trading at a lower price-to-earnings ratio than Applied Optoelectronics, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
37.6% of JinkoSolar shares are owned by institutional investors. Comparatively, 63.3% of Applied Optoelectronics shares are owned by institutional investors. 6.6% of Applied Optoelectronics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
JinkoSolar beats Applied Optoelectronics on 8 of the 14 factors compared between the two stocks.
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.
Applied Optoelectronics Company Profile
Applied Optoelectronics, Inc. designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, cable television and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was founded in 1997 and is headquartered in Sugar Land, Texas.
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