Reviewing JinkoSolar (NYSE:JKS) & Tokyo Electron (OTCMKTS:TOELY)

Tokyo Electron (OTCMKTS:TOELY) and JinkoSolar (NYSE:JKS) are both computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Institutional & Insider Ownership

1.3% of Tokyo Electron shares are owned by institutional investors. Comparatively, 35.8% of JinkoSolar shares are owned by institutional investors. 19.8% of JinkoSolar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Tokyo Electron pays an annual dividend of $1.26 per share and has a dividend yield of 1.8%. JinkoSolar pays an annual dividend of $1.48 per share and has a dividend yield of 7.9%. Tokyo Electron pays out 33.6% of its earnings in the form of a dividend. JinkoSolar pays out -197.3% 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 Tokyo Electron and JinkoSolar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tokyo Electron	21.32%	24.79%	17.58%
JinkoSolar	0.53%	4.18%	1.06%

Valuation & Earnings

This table compares Tokyo Electron 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
Tokyo Electron	$12.33 billion	5.22	$2.51 billion	$3.75	18.63
JinkoSolar	$92.26 billion	0.01	$485.56 million	($0.75)	-24.89

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

Analyst Recommendations

This is a breakdown of recent ratings for Tokyo Electron and JinkoSolar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tokyo Electron	0	0	0	1	4.00
JinkoSolar	3	2	1	0	1.67

JinkoSolar has a consensus target price of $27.19, indicating a potential upside of 45.63%. Given JinkoSolar’s higher possible upside, analysts clearly believe JinkoSolar is more favorable than Tokyo Electron.

Risk and Volatility

Tokyo Electron has a beta of 1.58, suggesting that its stock price is 58% more volatile than the S&P 500. Comparatively, JinkoSolar has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.

Summary

Tokyo Electron beats JinkoSolar on 9 of the 17 factors compared between the two stocks.

About Tokyo Electron

Tokyo Electron Limited, together with its subsidiaries, develops, manufactures, and sells semiconductor and flat panel display (FPD) production equipment in Japan, Europe, North America, Taiwan, China, South Korea, Southeast Asia, and internationally. The company offers coaters/developers, etch systems, surface preparation systems, deposition systems, test systems, wafer bonders/debonders, wafer edge trimming, SiC epitaxial CVD systems, gas cluster ion beam system, and cleaning systems. It also provides plasma etch/ash systems for use in the manufacture of FPDs, as well as inkjet printing systems for manufacturing OLED displays. In addition, the company offers delivery, facility management, and non-life insurance services; sells semiconductor products, board computer products, software, and other electronic components; sells and supports network/storage/middleware related solutions; and develops, manufactures, and sells magnetic annealing systems. Tokyo Electron Limited was incorporated in 1951 and is headquartered in Tokyo, 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.