Tecogen (NASDAQ: TGEN) and Renesola (NYSE:SOL) are both small-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Earnings and Valuation

This table compares Tecogen and Renesola’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tecogen $28.16 million 2.69 $502,228.00 N/A N/A
Renesola $825.75 million 0.06 $41.45 million ($3.17) -0.78

Renesola has higher revenue and earnings than Tecogen.

Risk and Volatility

Tecogen has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Renesola has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500.

Institutional & Insider Ownership

9.1% of Tecogen shares are held by institutional investors. Comparatively, 14.5% of Renesola shares are held by institutional investors. 19.5% of Tecogen shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Tecogen and Renesola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tecogen -0.13% -0.18% -0.11%
Renesola -7.71% -81.60% -5.36%

Analyst Ratings

This is a breakdown of current ratings and price targets for Tecogen and Renesola, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tecogen 0 1 3 0 2.75
Renesola 1 1 0 0 1.50

Tecogen presently has a consensus target price of $14.50, indicating a potential upside of 373.86%. Renesola has a consensus target price of $3.00, indicating a potential upside of 21.95%. Given Tecogen’s stronger consensus rating and higher possible upside, research analysts plainly believe Tecogen is more favorable than Renesola.

Summary

Tecogen beats Renesola on 8 of the 12 factors compared between the two stocks.

About Tecogen

Tecogen Inc. designs, manufactures, sells and maintains cogeneration products, including combined heat and power (CHP), air conditioning systems and water heaters for residential, commercial, recreational and industrial use. The Company is engaged in the business of manufacturing and supporting CHP products based on engines fueled by natural gas. The Company manufactures over three types of CHP products, such as cogeneration units that supply electricity and hot water, chillers that provide air-conditioning and hot water, and water heaters. Its commercial product line includes the InVerde, InVerde e+ and TECOGEN cogeneration units; TECOCHILL chillers; Ilios high-efficiency water heaters, and Ultera emissions control technology. Its customers include hospitals and nursing homes, hotels and motels, office and retail buildings, and military installations. Its cogeneration systems and chillers use the engine, the TecoDrive 7400 model.

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.

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