Canadian Solar (NASDAQ:CSIQ – Get Free Report) and SkyWater Technology (NASDAQ:SKYT – Get Free Report) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Insider and Institutional Ownership
52.4% of Canadian Solar shares are held by institutional investors. Comparatively, 70.0% of SkyWater Technology shares are held by institutional investors. 21.5% of Canadian Solar shares are held by insiders. Comparatively, 42.5% of SkyWater Technology shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for Canadian Solar and SkyWater Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Solar | 1 | 4 | 4 | 0 | 2.33 |
| SkyWater Technology | 0 | 0 | 4 | 0 | 3.00 |
Valuation and Earnings
This table compares Canadian Solar and SkyWater Technology’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Solar | $7.61 billion | 0.15 | $274.19 million | $2.88 | 6.00 |
| SkyWater Technology | $300.22 million | 1.19 | -$30.76 million | ($0.69) | -10.97 |
Canadian Solar has higher revenue and earnings than SkyWater Technology. SkyWater 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.
Profitability
This table compares Canadian Solar and SkyWater Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Solar | 2.80% | 5.61% | 1.73% |
| SkyWater Technology | -10.73% | -32.59% | -6.66% |
Volatility & Risk
Canadian Solar has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, SkyWater Technology has a beta of 3.94, indicating that its share price is 294% more volatile than the S&P 500.
Summary
Canadian Solar beats SkyWater Technology on 7 of the 13 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 SkyWater Technology
SkyWater Technology, Inc., together with its subsidiaries, operates as a pure-play technology foundry that engages in the provision of semiconductor development, manufacturing, and packaging services in the United States. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, micro-electromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive, bio-health, consumer, and industrial sectors. The company was incorporated in 2016 and is headquartered in Bloomington, Minnesota.
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