Head to Head Analysis: JinkoSolar (NYSE:JKS) & Tower Semiconductor (NYSE:TSEM)

JinkoSolar (NYSE:JKS) and Tower Semiconductor (NASDAQ:TSEM) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Profitability

This table compares JinkoSolar and Tower Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
JinkoSolar 1.72% 5.36% 1.21%
Tower Semiconductor 9.34% 11.19% 7.65%

Volatility and Risk

JinkoSolar has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Tower Semiconductor has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

Insider & Institutional Ownership

44.7% of JinkoSolar shares are held by institutional investors. Comparatively, 51.1% of Tower Semiconductor shares are held by institutional investors. 1.0% of Tower Semiconductor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares JinkoSolar and Tower Semiconductor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
JinkoSolar $3.64 billion 0.19 $59.12 million $1.52 10.09
Tower Semiconductor $1.30 billion 1.68 $135.58 million $1.51 14.75

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for JinkoSolar and Tower Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
JinkoSolar 1 2 2 0 2.20
Tower Semiconductor 0 1 4 0 2.80

JinkoSolar presently has a consensus target price of $17.80, indicating a potential upside of 16.11%. Tower Semiconductor has a consensus target price of $22.34, indicating a potential upside of 0.28%. Given JinkoSolar’s higher possible upside, research analysts plainly believe JinkoSolar is more favorable than Tower Semiconductor.

Summary

Tower Semiconductor beats JinkoSolar on 10 of the 14 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 in the People's Republic of China and internationally. 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, and system integrators under the JinkoSolar brand, as well as on an original equipment manufacturer basis. JinkoSolar Holding Co., Ltd. was founded in 2006 and is based in Shangrao, the People's Republic of China.

About Tower Semiconductor

Tower Semiconductor Ltd., an independent semiconductor foundry, manufactures and markets analog intensive mixed-signal semiconductor devices in the United States, Japan, Asia, and Europe. It provides various customizable process technologies, including SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, integrated power management, and MEMS. The company also offers transfer optimization and development process services to integrated device manufacturers and fabless companies. It serves various markets, such as automotive, medical and dental, professional photography, industrial and machine vision, AR and 3D gesture control, security, space and scientific, projectors and display, consumer, aerospace and defense, computers and servers, as well as Internet of Things; timing controllers; digital, mixed-signal/CMOS & RFCMOS; and display driver IC. The company was founded in 1993 and is headquartered in Migdal Haemek, Israel.

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