Sunworks (NASDAQ: SUNW) and Canadian Solar (NASDAQ:CSIQ) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
This is a summary of current ratings and target prices for Sunworks and Canadian Solar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sunworks currently has a consensus price target of $2.75, indicating a potential upside of 95.04%. Canadian Solar has a consensus price target of $17.29, indicating a potential upside of 0.09%. Given Sunworks’ stronger consensus rating and higher probable upside, analysts plainly believe Sunworks is more favorable than Canadian Solar.
Risk and Volatility
Sunworks has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Canadian Solar has a beta of 3.12, meaning that its share price is 212% more volatile than the S&P 500.
This table compares Sunworks and Canadian Solar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
6.2% of Sunworks shares are held by institutional investors. Comparatively, 41.3% of Canadian Solar shares are held by institutional investors. 5.6% of Sunworks shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Sunworks and Canadian Solar’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sunworks||$75.36 million||0.42||-$10.04 million||($0.57)||-2.47|
|Canadian Solar||$2.70 billion||0.37||$150.16 million||$0.44||39.25|
Canadian Solar has higher revenue and earnings than Sunworks. Sunworks is trading at a lower price-to-earnings ratio than Canadian Solar, indicating that it is currently the more affordable of the two stocks.
Canadian Solar beats Sunworks on 9 of the 13 factors compared between the two stocks.
Sunworks, Inc., formerly Solar3D, Inc., provides photo voltaic (PV) based power systems for the residential, commercial and agricultural markets in California and Nevada. The Company, through its operating subsidiaries, designs, arranges financing, integrates, installs and manages systems ranging in size from 2 kilowatt (KW) for residential loads to multi megawatts (MW) systems for larger commercial projects. The Company’s commercial installations include office buildings, manufacturing plants, warehouses and agricultural facilities, such as farms, wineries and dairies. The Company provides a range of installation services to its solar energy customers, including design, system engineering, procurement, permitting, construction, grid connection, warranty, system monitoring and maintenance. The Company has installed over 850 systems in California and Nevada.
About Canadian Solar
Canadian Solar Inc. is a solar power company. The Company is a provider of solar power products, services and system solutions with operations in North America, South America, Europe, Africa, the Middle East, Australia and Asia. Its segments include module segment, energy development segment and electricity generation segment. It designs, develops and manufactures solar wafers, solar cells and solar power products. The module segment primarily involves the design, development, manufacturing and sale of a range of solar power products, including standard solar modules and specialty solar products, and solar system kits. Its energy development segment consists of solar power project development, engineering, procurement and construction services, and operation and maintenance services. Its electricity generation segment consists of holding solar power projects for the purpose of generating income from the sale of electricity to the local or national grid or other power purchasers.
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