Head-To-Head Analysis: Canadian Solar (NASDAQ:CSIQ) and T1 Energy (NYSE:TE)

Canadian Solar (NASDAQ:CSIQ) and T1 Energy (NYSE:TE) are both small-cap energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Risk and Volatility

Canadian Solar has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, T1 Energy has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Canadian Solar and T1 Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Solar	4	5	3	1	2.08
T1 Energy	2	0	4	1	2.57

Canadian Solar presently has a consensus target price of $18.36, suggesting a potential upside of 41.48%. T1 Energy has a consensus target price of $7.83, suggesting a potential upside of 56.79%. Given T1 Energy’s stronger consensus rating and higher probable upside, analysts plainly believe T1 Energy is more favorable than Canadian Solar.

Earnings and Valuation

This table compares Canadian Solar and T1 Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Solar	$5.60 billion	0.16	-$104.13 million	($2.50)	-5.19
T1 Energy	$755.29 million	1.85	-$367.83 million	($2.06)	-2.43

Canadian Solar has higher revenue and earnings than T1 Energy. Canadian Solar is trading at a lower price-to-earnings ratio than T1 Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Canadian Solar and T1 Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Solar	-1.86%	-4.95%	-1.32%
T1 Energy	-48.11%	-173.39%	-22.64%

Institutional & Insider Ownership

52.4% of Canadian Solar shares are owned by institutional investors. Comparatively, 52.3% of T1 Energy shares are owned by institutional investors. 21.5% of Canadian Solar shares are owned by insiders. Comparatively, 15.7% of T1 Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

About Canadian Solar

Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in in Asia, the Americas, Europe, and internationally. The company operates through two segments, CSI Solar and Recurrent Energy. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. It offers standard solar modules and battery storage solutions; solar system kits, such as inverters, racking systems, and other accessories; power electronic products; and engineering, procurement, and construction (EPC) services, as well as operates battery energy storage projects. The Recurrent Energy segment engages in the development, construction, maintenance, and sale of solar power and battery storage projects; and operation of solar power plants; and sale of electricity. This segment provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. It has a fleet of solar and battery energy storage plants in operation with an aggregate capacity of approximately 1,005 MWp and 600 MWh. It serves distributors, system integrators, project developers, and installers/EPC companies, as well as utility companies or grid operators, public utilities, licensed suppliers, corporate offtakers, and commercial, industrial or government end users. It sells its products primarily under its Canadian Solar brand name. Canadian Solar Inc. was incorporated in 2001 and is based in Guelph, Canada.

About T1 Energy

T1 Energy Inc. is an energy solutions provider building an integrated supply chain for solar and batteries. T1 Energy Inc. , formerly known as FREYR Battery, is based in NEW YORK.