Analyzing Trina Solar Limited (TSL) & Yingli Green Energy Holding Company Limited (YGE)

Trina Solar Limited (NYSE: TSL) and Yingli Green Energy Holding Company Limited (NYSE:YGE) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares Trina Solar Limited and Yingli Green Energy Holding Company Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Trina Solar Limited 3.48% N/A N/A
Yingli Green Energy Holding Company Limited -31.08% N/A -5.70%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Trina Solar Limited and Yingli Green Energy Holding Company Limited, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trina Solar Limited 1 2 0 0 1.67
Yingli Green Energy Holding Company Limited 3 0 0 0 1.00

Trina Solar Limited presently has a consensus target price of $12.20, indicating a potential upside of 5.72%. Yingli Green Energy Holding Company Limited has a consensus target price of $3.30, indicating a potential upside of 45.37%. Given Yingli Green Energy Holding Company Limited’s higher possible upside, analysts plainly believe Yingli Green Energy Holding Company Limited is more favorable than Trina Solar Limited.

Institutional & Insider Ownership

61.4% of Trina Solar Limited shares are owned by institutional investors. Comparatively, 3.6% of Yingli Green Energy Holding Company Limited shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Trina Solar Limited has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Yingli Green Energy Holding Company Limited has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500.

Earnings and Valuation

This table compares Trina Solar Limited and Yingli Green Energy Holding Company Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Trina Solar Limited N/A N/A N/A $1.43 8.07
Yingli Green Energy Holding Company Limited $1.08 billion 0.04 $49.01 million ($18.34) -0.12

Yingli Green Energy Holding Company Limited has higher revenue and earnings than Trina Solar Limited. Yingli Green Energy Holding Company Limited is trading at a lower price-to-earnings ratio than Trina Solar Limited, indicating that it is currently the more affordable of the two stocks.

Summary

Trina Solar Limited beats Yingli Green Energy Holding Company Limited on 5 of the 8 factors compared between the two stocks.

About Trina Solar Limited

Trina Solar Limited is an integrated solar power products manufacturer and solar system developer based in China with a global distribution network. The Company has integrated the manufacturing of ingots, wafers and solar cells for use in its photovoltaic (PV) module production. Its PV modules provide electric power for residential, commercial, industrial and other applications. It also develops, designs, constructs, operates and sells solar power projects that primarily use the solar modules it manufactures. It operates through two segments: manufacturing segment and the solar power projects segment. The manufacturing segment designs, develops, manufactures and sells PV modules, and integrates the manufacturing of ingots, wafers and solar cells for use in its PV module production. The solar power projects segment designs, constructs, operates and sells solar power projects in China, the United Kingdom, the United States and other European and Asian countries.

About Yingli Green Energy Holding Company Limited

Yingli Green Energy Holding Company Limited is a solar panel manufacturer. The Company’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and solar panel assembly. The Company’s end products include photovoltaic (PV) modules and PV systems of different sizes and power outputs. The Company sells PV modules under its own brand names, Yingli and Yingli Solar, to PV system integrators and distributors located in various markets around the world, including China, Japan, the United States, the United Kingdom, Chile, Algeria, Germany, France, South Africa, Turkey and Honduras. The Company’s products and services include the manufacture of polysilicon ingots and wafers, PV cells, PV modules and integrated PV systems, and the development and operation of solar projects. The Company produces approximately 800 kilogram multi-crystalline polysilicon ingots. The Company’s PV modules have output ranging from 250 to 340 watts.

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