Contrasting Canadian Solar (NASDAQ:CSIQ) & SMA Solar Technology (OTCMKTS:SMTGF)

Canadian Solar (NASDAQ:CSIQ) and SMA Solar Technology (OTCMKTS:SMTGF) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Insider & Institutional Ownership

52.4% of Canadian Solar shares are owned by institutional investors. Comparatively, 12.9% of SMA Solar Technology shares are owned by institutional investors. 21.5% of Canadian Solar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Canadian Solar and SMA Solar Technology”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canadian Solar	$5.90 billion	0.16	$36.05 million	($2.50)	-5.69
SMA Solar Technology	N/A	N/A	N/A	($2.91)	-14.31

Canadian Solar has higher revenue and earnings than SMA Solar Technology. SMA Solar Technology is trading at a lower price-to-earnings ratio than Canadian Solar, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Canadian Solar and SMA Solar Technology, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canadian Solar	4	5	3	0	1.92
SMA Solar Technology	0	2	0	0	2.00

Canadian Solar presently has a consensus target price of $19.56, suggesting a potential upside of 37.44%. Given Canadian Solar’s higher probable upside, equities research analysts clearly believe Canadian Solar is more favorable than SMA Solar Technology.

Profitability

This table compares Canadian Solar and SMA Solar Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canadian Solar	-1.86%	-4.96%	-1.33%
SMA Solar Technology	N/A	N/A	N/A

Summary

Canadian Solar beats SMA Solar Technology on 7 of the 11 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 SMA Solar Technology

SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally. It operates through Home Solutions, Commercial and Industrial Solutions, and Large Scale and Project Solutions segments. The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters. It also provides E-mobility charging solutions; monitoring and control solutions for PV systems; and energy data services, as well as digital solutions to design, operate, and service PV systems and energy systems. The company was formerly known as SMA Technologie AG and changed its name to SMA Solar Technology AG in June 2008. SMA Solar Technology AG was founded in 1981 and is headquartered in Niestetal, Germany.