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JKS vs. RUN: Which Stock Is the Better Value Option?

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Investors looking for stocks in the Solar sector might want to consider either JinkoSolar (JKS - Free Report) or Sunrun (RUN - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

JinkoSolar and Sunrun are sporting Zacks Ranks of #1 (Strong Buy) and #4 (Sell), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that JKS is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.

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.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

JKS currently has a forward P/E ratio of 7.53, while RUN has a forward P/E of 19.92. 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 3.98.

Another notable valuation metric for JKS is its P/B ratio of 0.52. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, RUN has a P/B of 1.65.

These are just a few of the metrics contributing to JKS's Value grade of B and RUN's Value grade of F.

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.


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

Sunrun Inc. (RUN) - free report >>

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