Critical Analysis: JinkoSolar (NYSE:JKS) vs. e.Digital (OTCMKTS:EDIG)

e.Digital (OTCMKTS:EDIG) and JinkoSolar (NYSE:JKS) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

e.Digital has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.

Valuation & Earnings

This table compares e.Digital 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
e.Digital	$700,000.00	0.04	-$1.27 million	N/A	N/A
JinkoSolar	$16.72 billion	0.07	$485.56 million	$7.85	2.75

JinkoSolar has higher revenue and earnings than e.Digital.

Profitability

This table compares e.Digital and JinkoSolar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
e.Digital	N/A	N/A	N/A
JinkoSolar	2.89%	11.85%	3.00%

Institutional and Insider Ownership

35.8% of JinkoSolar shares are owned by institutional investors. 2.3% of e.Digital shares are owned by company insiders. Comparatively, 19.8% of JinkoSolar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for e.Digital and JinkoSolar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
e.Digital	0	0	0	0	N/A
JinkoSolar	1	5	0	0	1.83

JinkoSolar has a consensus price target of $26.60, suggesting a potential upside of 23.32%. Given JinkoSolar’s higher probable upside, analysts clearly believe JinkoSolar is more favorable than e.Digital.

Summary

JinkoSolar beats e.Digital on 9 of the 10 factors compared between the two stocks.

About e.Digital

e.Digital Corporation engages in developing and marketing an intellectual property portfolio of context and interpersonal awareness systems, advanced data security technologies, secure communication technologies, and other technologies. It is involved in licensing and enforcing its Nunchi portfolio of patents related to context and interpersonal awareness systems; microSignet data security technology based on characteristics in semi-conductors; Synap security system, method, and apparatus to solve the issues of encryption key generation and exchange; and other technologies. The company was formerly known as Norris Communications, Inc. and changed its name to e.Digital Corporation in January 1999. e.Digital Corporation was founded in 1988 and is based in San Diego, California.

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; 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 December 31, 2022, it had an integrated annual capacity of 65 gigawatts (GW) for mono wafers; 55 GW for solar cells; and 70 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 headquartered in Shangrao, the People's Republic of China.