Canadian Solar (NASDAQ:CSIQ) and Netlist (OTCMKTS:NLST) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Volatility and Risk
Canadian Solar has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, Netlist has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.
This table compares Canadian Solar and Netlist’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Canadian Solar||$3.20 billion||0.85||$171.59 million||$2.19||20.88|
|Netlist||$26.10 million||21.01||-$12.45 million||($0.08)||-31.88|
Canadian Solar has higher revenue and earnings than Netlist. Netlist is trading at a lower price-to-earnings ratio than Canadian Solar, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Canadian Solar and Netlist, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Canadian Solar currently has a consensus price target of $51.56, suggesting a potential upside of 12.76%. Netlist has a consensus price target of $0.90, suggesting a potential downside of 64.71%. Given Canadian Solar’s stronger consensus rating and higher probable upside, analysts plainly believe Canadian Solar is more favorable than Netlist.
Institutional and Insider Ownership
41.0% of Canadian Solar shares are held by institutional investors. Comparatively, 0.1% of Netlist shares are held by institutional investors. 6.9% of Netlist shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Canadian Solar and Netlist’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Canadian Solar beats Netlist on 12 of the 14 factors compared between the two stocks.
Canadian Solar Company Profile
Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products. The company operates through two segments, Module and System Solutions (MSS), and Energy. The MSS segment engages in the design, development, manufacture, and sale of a range of solar power products, including standard solar modules, specialty solar products, and solar system kits that are a ready-to-install packages comprising inverters, racking systems, and other accessories. It also provides engineering, procurement, and construction; and operation and maintenance (O&M) services. This segment's energy solution products include solar inverters and energy storage systems for utility, commercial, residential, and specialty product applications. Its O&M services include inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar power projects. The Energy segment engages in the development and sale of solar power projects; and operation of solar power plants and sale of electricity. As of January 31, 2020, this segment had a fleet of solar power plants in operation with an aggregate capacity of approximately 880.2 MWp. The company's primary customers include distributors, system integrators, project developers, and installers/EPC companies. Canadian Solar Inc. sells its products primarily under its Canadian Solar brand name; and on an OEM basis. It has operations in North America, South America, Europe, South Africa, the Middle East, Australia, Asia, and internationally. The company was founded in 2001 and is headquartered in Guelph, Canada.
Netlist Company Profile
Netlist, Inc. designs, manufactures, and sells modular memory subsystems for the server, high-performance computing, and communications markets worldwide. It offers HybriDIMM, a storage class memory product, which unifies dynamic random access memory (DRAM) and NAND flash in a plug-and-play module delivering terabyte storage capacities operating at nanosecond memory speeds. The company also provides nonvolatile (NV) memory products, such as NVvault DDR4 NVDIMM that provides data acceleration and protection in a JEDEC standard DDR4 interface; and specialty DIMMs and embedded flash products for use in data center and industrial applications. It resells solid state drive (SSD), NAND flash, DRAM products, and other component products to storage customers, appliance customers, system builders, and cloud and datacenter customers; and sells component inventory to distributors and other users of memory integrated circuits. The company markets and sells its products primarily to original equipment manufacturers through a direct sales force and a network of independent sales representatives. Netlist, Inc. was founded in 2000 and is headquartered in Irvine, California.
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