SolarWorld vs Canadian Solar Which Is a Better Investment?

SolarWorld and Canadian Solar are both leading companies in the solar energy industry, but they have some key differences in terms of market performance and investor perception. SolarWorld, a German-based company, has a strong reputation for high-quality solar panels and consistent growth, while Canadian Solar, a Chinese-based company, is known for its aggressive expansion and competitive pricing. Investors may be drawn to SolarWorld for its stability and proven track record, while Canadian Solar may appeal to those seeking higher growth potential.

SolarWorld or Canadian Solar?

When comparing SolarWorld and Canadian 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 SolarWorld and Canadian 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. SolarWorld has a dividend yield of -%, while Canadian Solar has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SolarWorld reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Canadian 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 SolarWorld P/E ratio at 0.00 and Canadian Solar's P/E ratio at 1122.58. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SolarWorld P/B ratio is 0.00 while Canadian Solar's P/B ratio is 0.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SolarWorld has seen a 5-year revenue growth of 0.00%, while Canadian Solar's is 0.90%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SolarWorld's ROE at 0.00% and Canadian Solar's ROE at 0.03%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are €0.15 for SolarWorld and $12.47 for Canadian Solar. Over the past year, SolarWorld's prices ranged from €0.13 to €0.30, with a yearly change of 130.77%. Canadian Solar's prices fluctuated between $10.91 and $26.85, with a yearly change of 146.10%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.