Canadian Solar vs First Solar Which Is More Reliable?

Canadian Solar and First Solar are two major players in the solar energy industry, both publicly traded companies that have generated significant interest among investors. Canadian Solar, based in Canada, has a global presence, while First Solar, based in the United States, focuses on thin-film solar technology. Both companies have experienced fluctuations in their stock prices in recent years, reflecting the volatility of the renewable energy market. Investors are closely watching these stocks for their potential growth and impact on the industry.

Canadian Solar or First Solar?

When comparing Canadian Solar and First Solar, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Canadian Solar and First Solar.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Canadian Solar has a dividend yield of -%, while First Solar has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Canadian Solar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, First Solar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Canadian Solar P/E ratio at 1087.44 and First Solar's P/E ratio at 16.84. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Canadian Solar P/B ratio is 0.29 while First Solar's P/B ratio is 2.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Canadian Solar has seen a 5-year revenue growth of 0.90%, while First Solar's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Canadian Solar's ROE at 0.03% and First Solar's ROE at 17.56%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $12.25 for Canadian Solar and $195.98 for First Solar. Over the past year, Canadian Solar's prices ranged from $10.91 to $26.85, with a yearly change of 146.10%. First Solar's prices fluctuated between $135.88 and $306.77, with a yearly change of 125.77%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.