Reviewing First Solar (NASDAQ:FSLR) & Emeren Group (NYSE:SOL)

Emeren Group (NYSE:SOL) and First Solar (NASDAQ:FSLR) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Volatility and Risk

Emeren Group has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, First Solar has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Emeren Group and First Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Emeren Group	-7.14%	-2.05%	-1.55%
First Solar	32.41%	17.56%	11.46%

Insider and Institutional Ownership

44.1% of Emeren Group shares are held by institutional investors. Comparatively, 92.1% of First Solar shares are held by institutional investors. 37.3% of Emeren Group shares are held by insiders. Comparatively, 0.5% of First Solar shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Emeren Group and First Solar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Emeren Group	$92.07 million	0.74	-$3.19 million	($0.21)	-6.30
First Solar	$4.21 billion	3.23	$830.78 million	$11.76	10.76

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

Analyst Ratings

This is a summary of recent recommendations for Emeren Group and First Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Emeren Group	3	0	2	0	1.80
First Solar	1	5	23	2	2.84

Emeren Group presently has a consensus target price of $4.13, suggesting a potential upside of 211.56%. First Solar has a consensus target price of $223.87, suggesting a potential upside of 76.87%. Given Emeren Group’s higher possible upside, equities analysts clearly believe Emeren Group is more favorable than First Solar.

Summary

First Solar beats Emeren Group on 12 of the 15 factors compared between the two stocks.

About Emeren Group

Emeren Group Ltd, together with its subsidiaries, develops, builds, and sells solar power projects. It owns and operates 3-gigawatt pipeline of projects and independent power producer assets, as well as a 10-gigawatt pipeline of storage pipeline. The company develops community solar gardens; and sells project rights. In addition, it engages in engineering design; procurement of solar modules; balance-of-system components and other components; and construction contracting and management services. Further, the company generates and sells electricity. It operates in China, the United States, the United Kingdom, Germany, France, Poland, Italy, and Hungary. The company was formerly known as ReneSola Ltd and changed its name to Emeren Group Ltd in January 2023. Emeren Group Ltd was founded in 2005 and is headquartered in Norwalk, Connecticut.

About First Solar

First Solar, Inc., a solar technology company, provides photovoltaic (PV) solar energy solutions in the United States, France, Japan, Chile, and internationally. The company manufactures and sells PV solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It designs, manufactures, and sells cadmium telluride solar modules that converts sunlight into electricity. The company's residual business operations include project development activities, operations and maintenance services, and the sale of PV solar power systems to third-party customers. It serves developers and operators of systems, utilities, independent power producers, commercial and industrial companies, and other system owners. The company was formerly known as First Solar Holdings, Inc. and changed its name to First Solar, Inc. in 2006. First Solar, Inc. was founded in 1999 and is headquartered in Tempe, Arizona.