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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, both JinkoSolar and Sunworks, Inc. are sporting a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
JKS currently has a forward P/E ratio of 6.49, while SUNW has a forward P/E of 18.60. We also note that JKS has a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SUNW currently has a PEG ratio of 1.86.
Another notable valuation metric for JKS is its P/B ratio of 0.46. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, SUNW has a P/B of 1.02.
These are just a few of the metrics contributing to JKS's Value grade of B and SUNW's Value grade of F.
Both JKS and SUNW are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that JKS is the superior value 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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