Yingli Green Energy Holding Company Limited (NYSE: YGE) and Ideal Power (NASDAQ:IPWR) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Yingli Green Energy Holding Company Limited and Ideal Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yingli Green Energy Holding Company Limited -31.08% N/A -5.70%
Ideal Power -895.37% -95.52% -83.42%

Institutional and Insider Ownership

2.3% of Yingli Green Energy Holding Company Limited shares are owned by institutional investors. Comparatively, 17.0% of Ideal Power shares are owned by institutional investors. 10.0% of Ideal Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Yingli Green Energy Holding Company Limited and Ideal Power’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Yingli Green Energy Holding Company Limited $1.09 billion 0.04 $49.28 million ($18.34) -0.14
Ideal Power $1.34 million 25.69 -$11.42 million ($1.11) -2.22

Yingli Green Energy Holding Company Limited has higher revenue and earnings than Ideal Power. Ideal Power is trading at a lower price-to-earnings ratio than Yingli Green Energy Holding Company Limited, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Yingli Green Energy Holding Company Limited and Ideal Power, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yingli Green Energy Holding Company Limited 3 0 0 0 1.00
Ideal Power 0 1 3 0 2.75

Yingli Green Energy Holding Company Limited presently has a consensus target price of $3.30, suggesting a potential upside of 25.48%. Ideal Power has a consensus target price of $5.00, suggesting a potential upside of 103.25%. Given Ideal Power’s stronger consensus rating and higher probable upside, analysts clearly believe Ideal Power is more favorable than Yingli Green Energy Holding Company Limited.

Volatility and Risk

Yingli Green Energy Holding Company Limited has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500. Comparatively, Ideal Power has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Summary

Ideal Power beats Yingli Green Energy Holding Company Limited on 7 of the 13 factors compared between the two stocks.

Yingli Green Energy Holding Company Limited Company Profile

Yingli Green Energy Holding Company Limited is a solar panel manufacturer. The Company’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and solar panel assembly. The Company’s end products include photovoltaic (PV) modules and PV systems of different sizes and power outputs. The Company sells PV modules under its own brand names, Yingli and Yingli Solar, to PV system integrators and distributors located in various markets around the world, including China, Japan, the United States, the United Kingdom, Chile, Algeria, Germany, France, South Africa, Turkey and Honduras. The Company’s products and services include the manufacture of polysilicon ingots and wafers, PV cells, PV modules and integrated PV systems, and the development and operation of solar projects. The Company produces approximately 800 kilogram multi-crystalline polysilicon ingots. The Company’s PV modules have output ranging from 250 to 340 watts.

Ideal Power Company Profile

Ideal Power Inc. (Ideal Power) designs, markets and sells electrical power conversion products using its Power Packet Switching Architecture (PPSA) technology. The Company’s PPSA is a power conversion technology that utilizes standardized hardware with application specific embedded software. It sells products to systems integrators for integration into their system, which enable end users to manage their electricity consumption by reducing demand charges or fossil fuel consumption, integrating renewable energy sources and form their own microgrid. It focuses on licensing PPSA-based product designs to original equipment manufacturers (OEMs) within its target markets. Its products use multiple insulated gate bipolar transistors (IGBTs), which switch power in a direction, including direct current (DC) to alternating current (AC), or AC to DC. The PPSA uses indirect power flow in which power flows through input switches, and is temporarily stored in its AC link inductor.

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