Comparing Canadian Solar (NASDAQ:CSIQ) and Real Goods Solar (OTCMKTS:RGSEQ)

Real Goods Solar (OTCMKTS:RGSEQ) and Canadian Solar (NASDAQ:CSIQ) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Profitability

This table compares Real Goods Solar and Canadian Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Real Goods Solar	N/A	N/A	N/A
Canadian Solar	-1.87%	-4.20%	-1.10%

Valuation and Earnings

This table compares Real Goods Solar and Canadian Solar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Real Goods Solar	N/A	N/A	N/A	N/A	N/A
Canadian Solar	$5.60 billion	0.18	-$104.13 million	($2.52)	-5.96

Real Goods Solar has higher earnings, but lower revenue than Canadian Solar.

Analyst Recommendations

This is a summary of current ratings and price targets for Real Goods Solar and Canadian Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Goods Solar	0	0	0	0	0.00
Canadian Solar	4	6	3	0	1.92

Canadian Solar has a consensus price target of $18.66, indicating a potential upside of 24.26%. Given Canadian Solar’s stronger consensus rating and higher possible upside, analysts clearly believe Canadian Solar is more favorable than Real Goods Solar.

Institutional & Insider Ownership

52.4% of Canadian Solar shares are held by institutional investors. 0.9% of Real Goods Solar shares are held by company insiders. Comparatively, 21.5% of Canadian Solar 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.

Summary

Canadian Solar beats Real Goods Solar on 6 of the 9 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. provides solar energy systems to homeowners, and commercial building owners. It offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction activities. The firm operates through three segments: Solar Division, POWERHOUSE and Other. The Solar Division segment engages the installation of solar energy systems for homeowners, including lease financing thereof, and small business commercial. The POWERHOUSE segment engages in the manufacturing and sales of solar shingles. The Other segment engages in corporate operations. The Other segment consists of corporate operations. The company was founded in 1978 and is headquartered in Denver, CO.

About Canadian Solar

Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in in Asia, the Americas, Europe, and internationally. The company operates through two segments, CSI Solar and Recurrent Energy. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. It offers standard solar modules and battery storage solutions; solar system kits, such as inverters, racking systems, and other accessories; power electronic products; and engineering, procurement, and construction (EPC) services, as well as operates battery energy storage projects. The Recurrent Energy segment engages in the development, construction, maintenance, and sale of solar power and battery storage projects; and operation of solar power plants; and sale of electricity. This segment provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. It has a fleet of solar and battery energy storage plants in operation with an aggregate capacity of approximately 1,005 MWp and 600 MWh. It serves distributors, system integrators, project developers, and installers/EPC companies, as well as utility companies or grid operators, public utilities, licensed suppliers, corporate offtakers, and commercial, industrial or government end users. It sells its products primarily under its Canadian Solar brand name. Canadian Solar Inc. was incorporated in 2001 and is based in Guelph, Canada.