Back to top

Image: Bigstock

JKS or RUN: Which Is the Better Value Stock Right Now?

Read MoreHide Full Article

Investors interested in stocks from the Solar sector have probably already heard of JinkoSolar (JKS - Free Report) and Sunrun (RUN - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Right now, JinkoSolar is sporting a Zacks Rank of #1 (Strong Buy), while Sunrun has a Zacks Rank of #3 (Hold). This means that JKS's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.

JKS currently has a forward P/E ratio of 7.64, while RUN has a forward P/E of 17.27. We also note that JKS has a PEG ratio of 0.38. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. RUN currently has a PEG ratio of 3.45.

Another notable valuation metric for JKS is its P/B ratio of 0.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RUN has a P/B of 1.43.

Based on these metrics and many more, JKS holds a Value grade of B, while RUN has a Value grade of D.

JKS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that JKS is likely the superior value option right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


JinkoSolar Holding Company Limited (JKS) - free report >>

Sunrun Inc. (RUN) - free report >>

Published in