JKS vs. SUNW: Which Stock Is the Better Value Option?
Investors with an interest in Solar stocks have likely encountered both JinkoSolar (JKS) and Sunworks, Inc. (SUNW). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
JinkoSolar and Sunworks, Inc. are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that JKS likely has seen a stronger improvement to its earnings outlook than SUNW has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
JKS currently has a forward P/E ratio of 5.35, while SUNW has a forward P/E of 18.60. We also note that JKS has a PEG ratio of 0.54. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SUNW currently has a PEG ratio of 1.86.
Another notable valuation metric for JKS is its P/B ratio of 0.38. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SUNW has a P/B of 1.02.
Based on these metrics and many more, JKS holds a Value grade of B, while SUNW has a Value grade of D.
JKS sticks out from SUNW in both our Zacks Rank and Style Scores models, so value investors will likely feel that JKS is the better option right now.
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JinkoSolar Holding Company Limited (JKS) : Free Stock Analysis Report
Sunworks, Inc. (SUNW) : Free Stock Analysis Report
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