Comparing ARM (NASDAQ:ARM) and JinkoSolar (NYSE:JKS)

ARM (NASDAQ:ARM) and JinkoSolar (NYSE:JKS) are both technology companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Earnings & Valuation

This table compares ARM and JinkoSolar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ARM	$4.92 billion	39.40	$904.00 million	$0.87	208.61
JinkoSolar	$55.73 billion	0.01	-$635.64 million	($7.80)	-1.30

ARM has higher earnings, but lower revenue than JinkoSolar. JinkoSolar is trading at a lower price-to-earnings ratio than ARM, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

ARM has a beta of 3.93, indicating that its share price is 293% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares ARM and JinkoSolar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ARM	17.13%	11.57%	8.99%
JinkoSolar	-5.04%	-8.83%	-1.90%

Analyst Ratings

This is a summary of recent ratings for ARM and JinkoSolar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ARM	1	7	19	0	2.67
JinkoSolar	3	2	3	1	2.22

ARM presently has a consensus price target of $291.72, suggesting a potential upside of 60.74%. JinkoSolar has a consensus price target of $14.35, suggesting a potential upside of 42.10%. Given ARM’s stronger consensus rating and higher possible upside, equities analysts clearly believe ARM is more favorable than JinkoSolar.

Institutional & Insider Ownership

7.5% of ARM shares are owned by institutional investors. Comparatively, 35.8% of JinkoSolar shares are owned by institutional investors. 19.8% of JinkoSolar shares are owned 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.

Summary

ARM beats JinkoSolar on 11 of the 15 factors compared between the two stocks.

About ARM

Arm Holdings plc designs and licenses semiconductor technology, including processor architectures and related intellectual property. Rather than manufacturing chips, the company licenses its designs and collects royalties on products that use them. Arm’s offerings include Cortex CPUs, Mali graphics processors, Neoverse infrastructure platforms and other technology for applications ranging from smartphones and consumer electronics to automotive systems, the Internet of Things and cloud computing.

About JinkoSolar

JinkoSolar Holding Co., Ltd. is a solar technology company that manufactures and sells photovoltaic products. Its offerings include solar modules, cells, wafers and silicon ingots, serving customers involved in utility-scale, commercial and residential solar projects. The company operates a vertically integrated manufacturing business, covering several stages of the solar supply chain. Its product portfolio includes high-efficiency modules designed for use in a range of installation types. Founded in 2006 and headquartered in China, JinkoSolar serves markets around the world through international sales and manufacturing operations.