Comparing Nitto Denko (OTCMKTS:NDEKY) & JinkoSolar (NYSE:JKS)

Nitto Denko (OTCMKTS:NDEKY) and JinkoSolar (NYSE:JKS) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nitto Denko	$6.83 billion	2.24	$881.09 million	$1.31	17.20
JinkoSolar	$9.37 billion	0.05	-$635.64 million	($9.33)	-0.99

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

Risk & Volatility

Nitto Denko has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Insider and Institutional Ownership

35.8% of JinkoSolar 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.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nitto Denko and JinkoSolar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nitto Denko	0	1	0	0	2.00
JinkoSolar	3	3	1	1	2.00

JinkoSolar has a consensus target price of $19.88, suggesting a potential upside of 115.45%. Given JinkoSolar’s higher probable upside, analysts clearly believe JinkoSolar is more favorable than Nitto Denko.

Dividends

Nitto Denko pays an annual dividend of $0.22 per share and has a dividend yield of 1.0%. JinkoSolar pays an annual dividend of $1.48 per share and has a dividend yield of 16.0%. Nitto Denko pays out 16.8% of its earnings in the form of a dividend. JinkoSolar pays out -15.9% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nitto Denko	12.94%	12.13%	9.66%
JinkoSolar	-5.85%	-10.03%	-2.21%

About Nitto Denko

Nitto Denko Corporation primarily engages in the adhesive tapes business in Japan, the Americas, Europe, Asia, and Oceania. It provides double sided tapes, surface protective films, sealing materials, masking tapes, membranes, FPD/touch panel related products, gasket materials, semiconductor manufacturing process products, flexible printed circuit boards, porous films/breathable materials, and packaging tapes. The company also offers functional thermal transfer systems, such as labels, barcode label printers, and label printing software; tapes for electrical and electronic equipment; dust removal products for clean rooms; fluoroplastic sheets and tapes, and fluoroplastic porous films; and materials for housing and construction. In addition, it provides medical products, including transdermal therapeutic systems, athletic tapes, medical adhesive tapes for wearable devices and body sensors, adhesive tapes, and particles for nucleic acid synthesis. The company offers its products to automotive and transportation, housing/housing equipment, infrastructure, material, home appliance and electrical, display, electronic device, medical, packaging, and consumer/personal care industries. Nitto Denko Corporation was incorporated in 1918 and is headquartered in Osaka, Japan.

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.