Analyzing Xinyi Solar (OTCMKTS:XNYIF) & SolarEdge Technologies (NASDAQ:SEDG)

SolarEdge Technologies (NASDAQ:SEDG) and Xinyi Solar (OTCMKTS:XNYIF) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

95.1% of SolarEdge Technologies shares are owned by institutional investors. 1.0% of SolarEdge Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares SolarEdge Technologies and Xinyi Solar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SolarEdge Technologies	-28.56%	-38.66%	-7.72%
Xinyi Solar	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for SolarEdge Technologies and Xinyi Solar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SolarEdge Technologies	7	13	1	0	1.71
Xinyi Solar	0	0	0	0	0.00

SolarEdge Technologies presently has a consensus target price of $37.41, indicating a potential downside of 28.23%. Given SolarEdge Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe SolarEdge Technologies is more favorable than Xinyi Solar.

Earnings and Valuation

This table compares SolarEdge Technologies and Xinyi Solar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SolarEdge Technologies	$1.18 billion	2.68	-$405.45 million	($6.13)	-8.50
Xinyi Solar	N/A	N/A	N/A	N/A	N/A

Xinyi Solar has lower revenue, but higher earnings than SolarEdge Technologies.

Summary

SolarEdge Technologies beats Xinyi Solar on 6 of the 9 factors compared between the two stocks.

About SolarEdge Technologies

SolarEdge Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and sells direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations in the United States, Germany, the Netherlands, Italy, rest of Europe, and internationally. It operates in two segments, Solar and Energy Storage. The Solar segment offers power optimizers, inverters, batteries, storage solutions, electric vehicle chargers, smart tracking solutions, and smart energy management software products; Monitoring platform, a cloud-based monitoring platform, which collects power, voltage, current, and system data sent from inverters and power optimizers; and MySolarEdge app, that enables system owners to track their real-time system production and household energy consumption. This segment also provides Designer platform, an web-based tool that helps solar professionals to plan, build, and validate residential and commercial systems; Mapper application for registering the physical layout of new PV sites installed with DC optimized inverter systems; SetApp application that activates and configurate inverters; and grid services. The Energy Storage segment provides lithium-ion cells and containerized battery systems (BESS) solutions for commercial, industrial, and utility markets; modules and racks; purpose-built components and solutions, and hardware and software tools; and pre and post sales engineering support for designing, building, and managing battery and system solutions. The company offers e-mobility products, automated machines, and UPS products; and pre-sales support, ongoing trainings, and technical support and after installation services. It sells its products through solar installers and distributors, electrical equipment wholesalers, and PV module manufacturers, as well as engineering, procurement, and construction firms. SolarEdge Technologies, Inc. was incorporated in 2006 and is headquartered in Herzliya, Israel.

About Xinyi Solar

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People's Republic of China, rest of Asia, North America, Europe, and internationally. It operates in two segments, Sales of Solar Glass and Solar Farm Business. The company offers ultra-clear patterned solar glasses, back glasses, and anti-reflective coating solar glasses to photovoltaic module manufacturers. It also develops, operates, and manages solar farms; and provides engineering, procurement, and construction services. In addition, the company engages in the provision of solar power systems; and trading of solar glass products. Xinyi Solar Holdings Limited was founded in 2006 and is headquartered in Wuhu, the People's Republic of China.