Smart Global (NASDAQ:SGH) and JinkoSolar (NYSE:JKS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.
Volatility & Risk
Smart Global has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.
This table compares Smart Global and JinkoSolar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Smart Global and JinkoSolar’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Smart Global||$1.21 billion||0.52||$51.33 million||$2.56||10.75|
|JinkoSolar||$3.64 billion||0.19||$59.12 million||$1.52||10.34|
JinkoSolar has higher revenue and earnings than Smart Global. JinkoSolar is trading at a lower price-to-earnings ratio than Smart Global, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Smart Global and JinkoSolar, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Smart Global currently has a consensus price target of $37.00, indicating a potential upside of 34.40%. JinkoSolar has a consensus price target of $17.80, indicating a potential upside of 13.30%. Given Smart Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe Smart Global is more favorable than JinkoSolar.
Insider and Institutional Ownership
94.5% of Smart Global shares are held by institutional investors. Comparatively, 44.7% of JinkoSolar shares are held by institutional investors. 4.2% of Smart Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Smart Global beats JinkoSolar on 11 of the 14 factors compared between the two stocks.
Smart Global Company Profile
SMART Global Holdings, Inc. designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements. It also provides flash memory, USB, and serial advanced technology attachment products primarily for use in communications equipment, printers, servers and storage products, switches, and routers; and aerospace, automotive, and defense industries, as well as industrial applications. In addition, the company provides networking, storage, and compute solutions, as well as HPC software to manage and use on premise and cloud computing clusters. Further, it offers supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging. SMART Global Holdings, Inc. sells its products to OEMs through direct sales force and independent sales representatives in North America, Latin America, Asia, and Europe. The company was formerly known as Saleen Holdings, Inc. and changed its name to SMART Global Holdings, Inc. in August 2014. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Newark, California.
JinkoSolar Company Profile
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.
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