Critical Survey: CMC Materials (NASDAQ:CCMP) vs. JinkoSolar (NYSE:JKS)

CMC Materials (NASDAQ:CCMPGet Rating) and JinkoSolar (NYSE:JKSGet Rating) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for CMC Materials and JinkoSolar, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CMC Materials 0 5 2 0 2.29
JinkoSolar 1 2 3 0 2.33

CMC Materials currently has a consensus price target of $197.25, indicating a potential upside of 13.56%. JinkoSolar has a consensus price target of $51.03, indicating a potential downside of 17.22%. Given CMC Materials’ higher possible upside, research analysts clearly believe CMC Materials is more favorable than JinkoSolar.

Risk and Volatility

CMC Materials has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.

Valuation & Earnings

This table compares CMC Materials and JinkoSolar’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CMC Materials $1.20 billion 4.14 -$68.58 million $3.82 45.47
JinkoSolar $6.41 billion 0.48 $113.14 million ($1.21) -50.94

JinkoSolar has higher revenue and earnings than CMC Materials. JinkoSolar is trading at a lower price-to-earnings ratio than CMC Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CMC Materials and JinkoSolar’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CMC Materials 8.85% 23.55% 9.97%
JinkoSolar -0.23% 3.22% 0.75%

Insider and Institutional Ownership

93.7% of CMC Materials shares are owned by institutional investors. Comparatively, 88.7% of JinkoSolar shares are owned by institutional investors. 2.4% of CMC Materials shares are owned by insiders. Comparatively, 19.8% of JinkoSolar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CMC Materials beats JinkoSolar on 9 of the 14 factors compared between the two stocks.

About CMC Materials

(Get Rating)

CMC Materials, Inc., together with its subsidiaries, provides consumable materials to semiconductor manufacturers, and pipeline and adjacent industry customers in North America, Asia, Europe, the Middle East, Africa, and South America. The company operates in two segments, Electronic Materials and Performance Materials. The Electronic Materials segment develops, produces, and sells chemical mechanical planarization (CMP) slurries for polishing various materials used in IC devices, including tungsten, dielectric materials, copper, tantalum, and aluminum; and various materials that are used in the production of disk substrates and magnetic heads for hard disk drives; and CMP pads, which are used in conjunction with slurries in the CMP process. This segment also offers sulfuric, phosphoric, nitric, and hydrofluoric acids, as well as ammonium hydroxide, hydrogen peroxide, isopropyl alcohol, other specialty organic solvents, and various blends of chemicals; and develops and manufactures consumable products for cleaning advanced probe cards and test sockets. The Performance Materials segment provides pipeline and industrial materials comprising polymer-based drag-reducing agents for crude oil transmission, valve greases, cleaners and sealants, and related services and equipment; and routine and emergency maintenance services, as well as training services. This segment also offers precision polishing and metrology systems for advanced optics applications; and magneto-rheological polishing fluids, consumables, and spare and replacement parts, as well as optical polishing services and other customer support services; and engages in the wood treatment business. The company was formerly known as Cabot Microelectronics Corporation and changed its name to CMC Materials, Inc. in October 2020. CMC Materials, Inc. was incorporated in 1999 and is headquartered in Aurora, Illinois.

About JinkoSolar

(Get Rating)

JinkoSolar Holding Co., Ltd., together with its subsidiaries, engages in the design, development, production, and marketing of photovoltaic products. The company offers solar modules, silicon wafers, solar cells, recovered silicon materials, and silicon ingots. It also provides solar system integration services; and develops commercial solar power projects. The company sells its products to distributors, project developers, system integrators, and manufacturers of solar power products under the JinkoSolar brand. As of March 31, 2022, it had an integrated annual capacity of 40 gigawatts (GW) for mono wafers; 40.0 GW for solar cells; and 50.0 GW for solar modules. The company has operations in the People's Republic of China, the United States, Mexico, Australia, Japan, United Arab Emirates, Turkey, Jordan, Vietnam, Egypt, Spain, and Germany. JinkoSolar Holding Co., Ltd. was founded in 2006 and is based in Shangrao, the People's Republic of China.

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