Tokyo Electron (OTCMKTS:TOELY) vs. JinkoSolar (NYSE:JKS) Critical Survey

JinkoSolar (NYSE:JKS) and Tokyo Electron (OTCMKTS:TOELY) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
JinkoSolar	0.53%	4.18%	1.06%
Tokyo Electron	21.32%	24.79%	17.58%

Volatility and Risk

JinkoSolar has a beta of 0.17, indicating that its stock price is 83% less volatile than the S&P 500. Comparatively, Tokyo Electron has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Insider and Institutional Ownership

35.8% of JinkoSolar shares are held by institutional investors. Comparatively, 1.3% of Tokyo Electron shares are held by institutional investors. 19.8% of JinkoSolar shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares JinkoSolar and Tokyo Electron”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JinkoSolar	$92.26 billion	0.01	$485.56 million	($0.75)	-20.92
Tokyo Electron	$12.33 billion	4.53	$2.51 billion	$3.75	16.18

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

Analyst Ratings

This is a summary of current recommendations and price targets for JinkoSolar and Tokyo Electron, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JinkoSolar	3	2	1	0	1.67
Tokyo Electron	0	0	0	1	4.00

JinkoSolar currently has a consensus target price of $27.19, indicating a potential upside of 73.30%. Given JinkoSolar’s higher possible upside, equities research analysts plainly believe JinkoSolar is more favorable than Tokyo Electron.

Dividends

JinkoSolar pays an annual dividend of $1.48 per share and has a dividend yield of 9.4%. Tokyo Electron pays an annual dividend of $1.26 per share and has a dividend yield of 2.1%. JinkoSolar pays out -197.3% of its earnings in the form of a dividend. Tokyo Electron pays out 33.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. JinkoSolar is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Tokyo Electron beats JinkoSolar on 9 of the 17 factors compared between the two stocks.

About JinkoSolar

JinkoSolar Holding Co., Ltd., together with its subsidiaries, engages in the design, development, production, and marketing of photovoltaic products. The company offers solar modules, silicon wafers, solar cells, recovered silicon materials, and silicon ingots. It also provides solar system integration services; solar power generation and solar system EPC services; and energy storage system, as well as undertakes solar power projects. The company sells its products to distributors, project developers, system integrators, and manufacturers of solar power products under the JinkoSolar brand. As of December 31, 2023, it had an integrated annual capacity of 85 gigawatts (GW) for mono wafers; 90 GW for solar cells; and 110 GW for solar modules. It operates in China, the United States, Mexico, Australia, Japan, the United Arab Emirates, Turkey, Jordan, Vietnam, Egypt, Spain, Germany, and internationally. JinkoSolar Holding Co., Ltd. was founded in 2006 and is headquartered in Shangrao, the People's Republic of China.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, Japan.