ReneSola (NYSE:SOL) and ON Semiconductor (NASDAQ:ON) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
12.5% of ReneSola shares are held by institutional investors. Comparatively, 96.8% of ON Semiconductor shares are held by institutional investors. 1.4% of ON Semiconductor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for ReneSola and ON Semiconductor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ReneSola | 0 | 1 | 1 | 0 | 2.50 |
| ON Semiconductor | 0 | 3 | 11 | 1 | 2.87 |
ReneSola presently has a consensus price target of $22.00, suggesting a potential upside of 1,449.30%. ON Semiconductor has a consensus price target of $25.35, suggesting a potential upside of 5.08%. Given ReneSola’s higher possible upside, analysts clearly believe ReneSola is more favorable than ON Semiconductor.
Profitability
This table compares ReneSola and ON Semiconductor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ReneSola | -2.42% | 1.70% | 0.56% |
| ON Semiconductor | 5.71% | 21.95% | 8.83% |
Risk & Volatility
ReneSola has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500. Comparatively, ON Semiconductor has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500.
Valuation & Earnings
This table compares ReneSola and ON Semiconductor’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ReneSola | $80.50 million | 0.67 | $1.76 million | $0.01 | 142.00 |
| ON Semiconductor | $5.88 billion | 1.69 | $627.40 million | $1.96 | 12.31 |
ON Semiconductor has higher revenue and earnings than ReneSola. ON Semiconductor is trading at a lower price-to-earnings ratio than ReneSola, indicating that it is currently the more affordable of the two stocks.
Summary
ON Semiconductor beats ReneSola on 13 of the 15 factors compared between the two stocks.
About ReneSola
ReneSola Ltd, through its subsidiaries, develops, builds, operates, and sells solar power projects. It operates through three segments: solar power project development, EPC services, and electricity revenue generation. The company also develops community solar gardens; and sells projects rights. In addition, its engineering, and procurement and construction business includes engineering design, procurement of solar modules, balance-of-system and other components, and construction contracting and management services. Further, the company generates and sells electricity. As of February 28, 2018, it operated approximately 80 solar power projects with an aggregate capacity of 212 MW. The company was founded in 2005 and is based in Shanghai, the People’s Republic of China.
About ON Semiconductor
ON Semiconductor Corporation manufactures and sells semiconductor components for various electronic devices worldwide. The company operates in three segments: Power Solutions Group, Analog Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and integrated semiconductor products for various applications, such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage reference. The Analog Solutions Group segment designs and develops analog, mixed-signal, and logic application specific integrated circuits and standard products, as well as power solutions for various end-users in the automotive, consumer, computing, industrial, communications, medical, and aerospace/defense markets. It also provides trusted foundry and design for government customers; and manufacturing services, as well as integrated passive devices product technology. The Intelligent Sensing Group segment offers complementary metal oxide semiconductors and charge-coupled device image sensors, as well as proximity sensors, image signal processors, single photon detectors, and actuator drivers for autofocus and image stabilization for a range of customers in automotive, industrial, consumer, wireless, medical, and aerospace/defense markets. The company serves original equipment manufacturers, distributors, and electronic manufacturing service providers. ON Semiconductor Corporation was founded in 1999 and is headquartered in Phoenix, Arizona.
Receive News & Ratings for ReneSola Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for ReneSola and related companies with MarketBeat.com’s FREE daily email newsletter.
