Principal Solar (OTCMKTS:PSWW) vs. JinkoSolar (NYSE:JKS) Financial Review

JinkoSolar (NYSE:JKS) and Principal Solar (OTCMKTS:PSWW) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Profitability

This table compares JinkoSolar and Principal Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JinkoSolar	-2.23%	-2.95%	-0.76%
Principal Solar	N/A	N/A	N/A

Earnings & Valuation

This table compares JinkoSolar and Principal Solar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JinkoSolar	$12.64 billion	0.09	$7.47 million	($5.02)	-4.29
Principal Solar	N/A	N/A	-$400,000.00	N/A	N/A

JinkoSolar has higher revenue and earnings than Principal Solar.

Volatility and Risk

JinkoSolar has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Principal Solar has a beta of 18.23, suggesting that its share price is 1,723% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for JinkoSolar and Principal Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JinkoSolar	5	1	1	0	1.43
Principal Solar	0	0	0	0	0.00

JinkoSolar presently has a consensus price target of $28.99, indicating a potential upside of 34.67%. Given JinkoSolar’s stronger consensus rating and higher possible upside, research analysts clearly believe JinkoSolar is more favorable than Principal Solar.

Insider & Institutional Ownership

35.8% of JinkoSolar shares are owned by institutional investors. 19.8% of JinkoSolar shares are owned by company insiders. Comparatively, 39.2% of Principal Solar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

JinkoSolar beats Principal Solar on 6 of the 11 factors compared between the two stocks.

About JinkoSolar

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; solar power generation and solar system EPC services; and energy storage system, as well as undertakes 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 December 31, 2023, it had an integrated annual capacity of 85 gigawatts (GW) for mono wafers; 90 GW for solar cells; and 110 GW for solar modules. It operates in China, the United States, Mexico, Australia, Japan, the United Arab Emirates, Turkey, Jordan, Vietnam, Egypt, Spain, Germany, and internationally. JinkoSolar Holding Co., Ltd. was founded in 2006 and is headquartered in Shangrao, the People's Republic of China.

About Principal Solar

Principal Solar, Inc. does not have significant operations. It focuses on renewable energy and natural gas sectors. The company is headquartered in Dallas Texas.