Analyzing Canadian Solar (CSIQ) & Its Competitors

Canadian Solar (NASDAQ: CSIQ) is one of 11 public companies in the “Photovoltaic Solar Systems & Equipment” industry, but how does it contrast to its peers? We will compare Canadian Solar to similar companies based on the strength of its analyst recommendations, institutional ownership, valuation, risk, dividends, profitability and earnings.

Analyst Recommendations

This is a breakdown of current recommendations for Canadian Solar and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Solar 1 6 3 0 2.20
Canadian Solar Competitors 175 582 854 56 2.47

Canadian Solar currently has a consensus target price of $20.14, indicating a potential upside of 13.23%. As a group, “Photovoltaic Solar Systems & Equipment” companies have a potential downside of 13.40%. Given Canadian Solar’s higher probable upside, equities analysts clearly believe Canadian Solar is more favorable than its peers.

Profitability

This table compares Canadian Solar and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Solar 0.84% 1.32% 0.22%
Canadian Solar Competitors -11.98% -119.61% -2.27%

Valuation and Earnings

This table compares Canadian Solar and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Canadian Solar $2.85 billion $65.24 million 43.39
Canadian Solar Competitors $1.32 billion -$58.64 million 1.10

Canadian Solar has higher revenue and earnings than its peers. Canadian Solar is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Canadian Solar has a beta of 3.12, suggesting that its share price is 212% more volatile than the S&P 500. Comparatively, Canadian Solar’s peers have a beta of 1.46, suggesting that their average share price is 46% more volatile than the S&P 500.

Insider and Institutional Ownership

40.0% of Canadian Solar shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by institutional investors. 16.2% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Canadian Solar beats its peers on 8 of the 13 factors compared.

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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