Canadian Solar (NASDAQ:CSIQ – Get Free Report) and SUMCO (OTCMKTS:SUOPY – Get Free Report) are both technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.
Profitability
This table compares Canadian Solar and SUMCO’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Solar | -3.73% | -5.57% | -1.43% |
| SUMCO | -6.60% | -4.24% | -2.41% |
Earnings and Valuation
This table compares Canadian Solar and SUMCO”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Solar | $5.60 billion | 0.11 | -$104.13 million | ($3.84) | -2.41 |
| SUMCO | $2.74 billion | 1.81 | -$78.72 million | ($1.03) | -27.57 |
SUMCO has lower revenue, but higher earnings than Canadian Solar. SUMCO is trading at a lower price-to-earnings ratio than Canadian Solar, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
52.4% of Canadian Solar shares are owned by institutional investors. Comparatively, 0.0% of SUMCO shares are owned by institutional investors. 21.5% of Canadian Solar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Canadian Solar and SUMCO, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Solar | 4 | 6 | 3 | 0 | 1.92 |
| SUMCO | 0 | 1 | 1 | 0 | 2.50 |
Canadian Solar currently has a consensus target price of $16.22, indicating a potential upside of 75.18%. Given Canadian Solar’s higher possible upside, equities analysts plainly believe Canadian Solar is more favorable than SUMCO.
Risk & Volatility
Canadian Solar has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, SUMCO has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.
Summary
Canadian Solar beats SUMCO on 8 of the 14 factors compared between the two stocks.
About Canadian Solar
Canadian Solar Inc., together with its subsidiaries, provides solar energy and battery energy storage products and solutions in in Asia, the Americas, Europe, and internationally. The company operates through two segments, CSI Solar and Recurrent Energy. The CSI Solar segment designs, develops, and manufactures solar ingots, wafers, cells, modules, and other solar power and battery storage products. It offers standard solar modules and battery storage solutions; solar system kits, such as inverters, racking systems, and other accessories; power electronic products; and engineering, procurement, and construction (EPC) services, as well as operates battery energy storage projects. The Recurrent Energy segment engages in the development, construction, maintenance, and sale of solar power and battery storage projects; and operation of solar power plants; and sale of electricity. This segment provides operation and maintenance (O&M) services, including monitoring, inspections, repair, and replacement of plant equipment; and site management and administrative support services for solar projects, as well as asset management services. It has a fleet of solar and battery energy storage plants in operation with an aggregate capacity of approximately 1,005 MWp and 600 MWh. It serves distributors, system integrators, project developers, and installers/EPC companies, as well as utility companies or grid operators, public utilities, licensed suppliers, corporate offtakers, and commercial, industrial or government end users. It sells its products primarily under its Canadian Solar brand name. Canadian Solar Inc. was incorporated in 2001 and is based in Guelph, Canada.
About SUMCO
Sumco Corporation manufactures and sells silicon wafers for the semiconductor industry in Japan, the United States, China, Taiwan, Korea, and internationally. It provides monocrystalline ingots, as well as polished, annealed, epitaxial, junction isolated, silicon-on-insulator, and reclaimed polished wafers. The company was formerly known as Sumitomo Mitsubishi Silicon Corp. and changed its name to Sumco Corporation in August 2005. Sumco Corporation was incorporated in 1999 and is headquartered in Tokyo, Japan.
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