Analyzing Renesola (SOL) and Trina Solar Limited (NYSE:TSL)

Renesola (NYSE: SOL) and Trina Solar Limited (NYSE:TSL) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Volatility & Risk

Renesola has a beta of 2.24, meaning that its stock price is 124% more volatile than the S&P 500. Comparatively, Trina Solar Limited has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.

Profitability

This table compares Renesola and Trina Solar Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renesola -7.71% -81.60% -5.36%
Trina Solar Limited 3.48% N/A N/A

Earnings & Valuation

This table compares Renesola and Trina Solar Limited’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Renesola $825.75 million 0.06 $41.45 million ($3.17) -0.81
Trina Solar Limited N/A N/A N/A $1.43 8.07

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Renesola and Trina Solar Limited, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renesola 1 1 0 0 1.50
Trina Solar Limited 1 2 0 0 1.67

Renesola currently has a consensus target price of $3.00, suggesting a potential upside of 17.19%. Trina Solar Limited has a consensus target price of $12.20, suggesting a potential upside of 5.72%. Given Renesola’s higher probable upside, research analysts clearly believe Renesola is more favorable than Trina Solar Limited.

Insider and Institutional Ownership

14.0% of Renesola shares are held by institutional investors. Comparatively, 61.4% of Trina Solar Limited shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Trina Solar Limited beats Renesola on 6 of the 9 factors compared between the two stocks.

About Renesola

ReneSola Ltd is a holding company. The Company is a brand and technology provider of energy-efficient products based in China. The Company’s segments include wafer sales, cell and module sales, and solar power projects. The wafer sales segment involves the manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The cell and module sales segment involves the manufacture and sales of solar cells and modules. The solar power projects segment involves sales of solar power projects and electricity generation revenue of certain project assets it owns and operates. The Company provides its customers with solar power products and processing services. It provides solar power products to a network of suppliers and customers, which includes manufacturers of solar cells and modules and distributors, installers and end users of solar modules. The Company manufactures solar-grade polysilicon, solar wafers, cells and modules.

About Trina Solar Limited

Trina Solar Limited is an integrated solar power products manufacturer and solar system developer based in China with a global distribution network. The Company has integrated the manufacturing of ingots, wafers and solar cells for use in its photovoltaic (PV) module production. Its PV modules provide electric power for residential, commercial, industrial and other applications. It also develops, designs, constructs, operates and sells solar power projects that primarily use the solar modules it manufactures. It operates through two segments: manufacturing segment and the solar power projects segment. The manufacturing segment designs, develops, manufactures and sells PV modules, and integrates the manufacturing of ingots, wafers and solar cells for use in its PV module production. The solar power projects segment designs, constructs, operates and sells solar power projects in China, the United Kingdom, the United States and other European and Asian countries.

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