Critical Analysis: Xinyi Solar (OTCMKTS:XNYIF) versus Sunrun (NASDAQ:RUN)

Xinyi Solar (OTCMKTS:XNYIF) and Sunrun (NASDAQ:RUN) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

This table compares Xinyi Solar and Sunrun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xinyi Solar	N/A	N/A	N/A
Sunrun	-106.50%	19.34%	3.38%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Xinyi Solar and Sunrun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xinyi Solar	1	0	0	0	1.00
Sunrun	1	8	13	0	2.55

Sunrun has a consensus price target of $19.99, suggesting a potential upside of 4.71%. Given Sunrun’s stronger consensus rating and higher probable upside, analysts plainly believe Sunrun is more favorable than Xinyi Solar.

Valuation & Earnings

This table compares Xinyi Solar and Sunrun”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xinyi Solar	N/A	N/A	N/A	N/A	N/A
Sunrun	$2.04 billion	2.17	-$2.85 billion	($11.18)	-1.71

Xinyi Solar has higher earnings, but lower revenue than Sunrun.

Institutional & Insider Ownership

91.7% of Sunrun shares are owned by institutional investors. 3.4% of Sunrun shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Sunrun beats Xinyi Solar on 8 of the 9 factors compared between the two stocks.

About Xinyi Solar

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People's Republic of China, rest of Asia, North America, Europe, and internationally. It operates in two segments, Sales of Solar Glass and Solar Farm Business. The company offers ultra-clear patterned solar glasses, back glasses, and anti-reflective coating solar glasses to photovoltaic module manufacturers. It also develops, operates, and manages solar farms; and provides engineering, procurement, and construction services. In addition, the company engages in the provision of solar power systems; and trading of solar glass products. Xinyi Solar Holdings Limited was founded in 2006 and is headquartered in Wuhu, the People's Republic of China.

About Sunrun

Sunrun Inc. designs, develops, installs, sells, owns, and maintains residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems; and sells services to commercial developers through multi-family and new homes. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.