ON Semiconductor (NASDAQ:ON) vs. Canadian Solar (NASDAQ:CSIQ) Financial Contrast

Canadian Solar (NASDAQ:CSIQ) and ON Semiconductor (NASDAQ:ON) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Risk & Volatility

Canadian Solar has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, ON Semiconductor has a beta of 2.24, suggesting that its stock price is 124% more volatile than the S&P 500.

Profitability

This table compares Canadian Solar and ON Semiconductor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Canadian Solar 8.45% 16.69% 4.43%
ON Semiconductor 1.55% 14.62% 5.49%

Valuation & Earnings

This table compares Canadian Solar and ON Semiconductor’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Canadian Solar $3.20 billion 0.36 $171.59 million $2.19 8.80
ON Semiconductor $5.52 billion 1.47 $211.70 million $1.49 13.30

ON Semiconductor has higher revenue and earnings than Canadian Solar. Canadian Solar is trading at a lower price-to-earnings ratio than ON Semiconductor, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Canadian Solar and ON Semiconductor, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Canadian Solar 0 0 5 0 3.00
ON Semiconductor 3 4 13 0 2.50

Canadian Solar presently has a consensus target price of $27.25, indicating a potential upside of 41.41%. ON Semiconductor has a consensus target price of $19.70, indicating a potential downside of 0.61%. Given Canadian Solar’s stronger consensus rating and higher probable upside, research analysts plainly believe Canadian Solar is more favorable than ON Semiconductor.

Insider & Institutional Ownership

40.5% of Canadian Solar shares are held by institutional investors. Comparatively, 97.5% of ON Semiconductor shares are held by institutional investors. 1.4% of ON Semiconductor shares are held 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.

Summary

ON Semiconductor beats Canadian Solar on 9 of the 14 factors compared between the two stocks.

Canadian Solar Company Profile

Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products primarily under the Canadian Solar brand name. The company operates through two segments, Module and System Solutions, and Energy. Its products include various solar modules that are used in residential, commercial, and industrial solar power generation systems. The company also provides specialty solar products consisting of Andes Solar Home System, an off-grid solar system that provides an economical source of electricity to homes and communities without access to grid; and Maple Solar System, a clean energy solution for families, as well as solar system kits, which are a ready-to-install packages that consist inverters, racking systems, and other accessories. In addition, it develops, builds, and sells solar power projects; performs engineering, procurement, and construction (EPC) work for solar power projects; and offers operation and maintenance services that include inspection, repair, and replacement of plant equipment, site management, and administrative support services. Further, the company generates and sells electricity through its solar plants with an aggregate capacity of approximately 1,211.1 megawatts. Canadian Solar Inc. offers its products to distributors, system integrators, project developers, and installers/EPC companies. The company has operations in North America, South America, Europe, Africa, the Middle East, Australia, and Asia. Canadian Solar Inc. was founded in 2001 and is based in Guelph, Canada.

ON Semiconductor Company Profile

ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group, Analog Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage reference. The Analog Solutions Group segment designs and develops analog, mixed-signal, and logic application specific integrated circuits and standard products, as well as power solutions for various end-users in the automotive, consumer, computing, industrial, communications, medical, and aerospace/defense markets. It also provides trusted foundry and design for government customers; and manufacturing services, as well as integrated passive devices product technology. The Intelligent Sensing Group segment offers complementary metal oxide semiconductors and charge-coupled device image sensors, as well as proximity sensors, image signal processors, single photon detectors, and actuator drivers for autofocus and image stabilization for a range of customers in automotive, industrial, consumer, wireless, medical, and aerospace/defense markets. The company serves original equipment manufacturers, distributors, and electronic manufacturing service providers. ON Semiconductor Corporation was founded in 1999 and is headquartered in Phoenix, Arizona.

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