Nextracker (NASDAQ:NXT – Get Free Report) and JinkoSolar (NYSE:JKS – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Institutional & Insider Ownership
67.4% of Nextracker shares are held by institutional investors. Comparatively, 35.8% of JinkoSolar shares are held by institutional investors. 0.6% of Nextracker shares are held by company insiders. Comparatively, 19.8% of JinkoSolar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Nextracker and JinkoSolar”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextracker | $2.96 billion | 5.06 | $509.17 million | $3.85 | 26.29 |
| JinkoSolar | $83.06 billion | 0.02 | $7.47 million | ($5.02) | -4.98 |
Nextracker has higher earnings, but lower revenue than JinkoSolar. JinkoSolar is trading at a lower price-to-earnings ratio than Nextracker, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Nextracker and JinkoSolar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextracker | 17.08% | 35.05% | 18.13% |
| JinkoSolar | -2.23% | -2.95% | -0.76% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Nextracker and JinkoSolar, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextracker | 0 | 10 | 16 | 1 | 2.67 |
| JinkoSolar | 5 | 1 | 1 | 0 | 1.43 |
Nextracker presently has a consensus price target of $94.05, suggesting a potential downside of 7.09%. JinkoSolar has a consensus price target of $28.99, suggesting a potential upside of 15.92%. Given JinkoSolar’s higher possible upside, analysts clearly believe JinkoSolar is more favorable than Nextracker.
Volatility & Risk
Nextracker has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.
Summary
Nextracker beats JinkoSolar on 12 of the 15 factors compared between the two stocks.
About Nextracker
Nextracker Inc., an energy solutions company, provides solar tracker and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. was formerly a subsidiary of Flex Ltd.
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.
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