Critical Analysis: Yingli Green Energy (YGE) and Its Competitors

Yingli Green Energy (NYSE: YGE) is one of 56 publicly-traded companies in the “ENERGY-ALT SRCS” industry, but how does it contrast to its competitors? We will compare Yingli Green Energy to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Valuation & Earnings

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This table compares Yingli Green Energy and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Yingli Green Energy $1.21 billion -$302.12 million -0.04
Yingli Green Energy Competitors $871.19 million $11.39 million 2.16

Yingli Green Energy has higher revenue, but lower earnings than its competitors. Yingli Green Energy is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Yingli Green Energy has a beta of 2.04, suggesting that its share price is 104% more volatile than the S&P 500. Comparatively, Yingli Green Energy’s competitors have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Profitability

This table compares Yingli Green Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Yingli Green Energy -57.78% N/A -10.60%
Yingli Green Energy Competitors -181.47% -61.67% -10.68%

Insider and Institutional Ownership

1.5% of Yingli Green Energy shares are owned by institutional investors. Comparatively, 42.7% of shares of all “ENERGY-ALT SRCS” companies are owned by institutional investors. 11.3% of shares of all “ENERGY-ALT SRCS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Yingli Green Energy and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Yingli Green Energy 2 0 0 0 1.00
Yingli Green Energy Competitors 418 1102 1369 80 2.37

Yingli Green Energy currently has a consensus price target of $2.00, indicating a potential upside of 20.48%. As a group, “ENERGY-ALT SRCS” companies have a potential upside of 15.11%. Given Yingli Green Energy’s higher probable upside, analysts plainly believe Yingli Green Energy is more favorable than its competitors.

Summary

Yingli Green Energy competitors beat Yingli Green Energy on 7 of the 13 factors compared.

About Yingli Green Energy

Yingli Green Energy Holding Company Limited is a solar panel manufacturer. The Company’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and solar panel assembly. The Company’s end products include photovoltaic (PV) modules and PV systems of different sizes and power outputs. The Company sells PV modules under its own brand names, Yingli and Yingli Solar, to PV system integrators and distributors located in various markets around the world, including China, Japan, the United States, the United Kingdom, Chile, Algeria, Germany, France, South Africa, Turkey and Honduras. The Company’s products and services include the manufacture of polysilicon ingots and wafers, PV cells, PV modules and integrated PV systems, and the development and operation of solar projects. The Company produces approximately 800 kilogram multi-crystalline polysilicon ingots. The Company’s PV modules have output ranging from 250 to 340 watts.

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