Enphase Energy (NASDAQ: ENPH) and JinkoSolar Holding Company Limited (NYSE:JKS) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitabiliy and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
Enphase Energy -22.98% -757.76% -36.10%
JinkoSolar Holding Company Limited 6.92% 12.53% 2.46%

Valuation & Earnings

This table compares Enphase Energy and JinkoSolar Holding Company Limited’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Enphase Energy $313.22 million 0.22 -$44.98 million ($1.27) -0.65
JinkoSolar Holding Company Limited $3.23 billion 0.23 $269.65 million $7.12 3.25

JinkoSolar Holding Company Limited has higher revenue and earnings than Enphase Energy. Enphase Energy 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 price targets for Enphase Energy and JinkoSolar Holding Company Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enphase Energy 0 5 3 0 2.38
JinkoSolar Holding Company Limited 2 1 2 0 2.00

Enphase Energy currently has a consensus target price of $2.08, indicating a potential upside of 152.56%. JinkoSolar Holding Company Limited has a consensus target price of $21.00, indicating a potential downside of 9.13%. Given Enphase Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Enphase Energy is more favorable than JinkoSolar Holding Company Limited.

Institutional and Insider Ownership

26.2% of Enphase Energy shares are owned by institutional investors. Comparatively, 20.8% of JinkoSolar Holding Company Limited shares are owned by institutional investors. 17.4% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Enphase Energy has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, JinkoSolar Holding Company Limited has a beta of 1.97, meaning that its share price is 97% more volatile than the S&P 500.

Summary

JinkoSolar Holding Company Limited beats Enphase Energy on 8 of the 13 factors compared between the two stocks.

Enphase Energy Company Profile

Enphase Energy, Inc. is a provider of energy management solutions. The Company is engaged in designing, developing, manufacturing and selling microinverter systems for the solar photovoltaic industry. Its semiconductor-based microinverter system converts direct current (DC) electricity to alternating current (AC) electricity. Its microinverter system consists of three components: Enphase microinverters, an Envoy gateway and Enlighten cloud-based software. Its Enphase microinverters provide power conversion at the individual solar module level by a digital architecture that incorporates custom application specific integrated circuits (ASIC), specialized power electronics devices, and an embedded software subsystem. Envoy bi-directional communications gateway provides collecting and sending data to Enlighten software. Enlighten cloud-based software provides the capabilities to remotely monitor, manage, and maintain an individual system or a fleet of systems.

JinkoSolar Holding Company Limited Company Profile

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.

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