Financial Review: Tecogen (TGEN) and Yingli Green Energy Holding Company Limited (YGE)

Tecogen (NASDAQ: TGEN) and Yingli Green Energy Holding Company Limited (NYSE:YGE) are both small-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Profitability

This table compares Tecogen and Yingli Green Energy Holding Company Limited’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tecogen	-0.13%	-0.18%	-0.11%
Yingli Green Energy Holding Company Limited	-31.08%	N/A	-5.70%

Insider & Institutional Ownership

8.4% of Tecogen shares are held by institutional investors. Comparatively, 3.3% of Yingli Green Energy Holding Company Limited shares are held by institutional investors. 23.1% of Tecogen shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Tecogen and Yingli Green Energy Holding Company Limited’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Tecogen	$28.16 million	2.33	$502,228.00	N/A	N/A
Yingli Green Energy Holding Company Limited	$1.08 billion	0.04	$49.01 million	($18.34)	-0.14

Yingli Green Energy Holding Company Limited has higher revenue and earnings than Tecogen.

Risk & Volatility

Tecogen has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Yingli Green Energy Holding Company Limited has a beta of 2.34, suggesting that its stock price is 134% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Tecogen and Yingli Green Energy Holding Company Limited, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tecogen	0	1	3	0	2.75
Yingli Green Energy Holding Company Limited	3	0	0	0	1.00

Tecogen presently has a consensus price target of $14.50, indicating a potential upside of 343.43%. Yingli Green Energy Holding Company Limited has a consensus price target of $3.30, indicating a potential upside of 32.00%. Given Tecogen’s stronger consensus rating and higher probable upside, equities analysts clearly believe Tecogen is more favorable than Yingli Green Energy Holding Company Limited.

Summary

Tecogen beats Yingli Green Energy Holding Company Limited on 8 of the 12 factors compared between the two stocks.

About Tecogen

Tecogen Inc. designs, manufactures, sells and maintains cogeneration products, including combined heat and power (CHP), air conditioning systems and water heaters for residential, commercial, recreational and industrial use. The Company is engaged in the business of manufacturing and supporting CHP products based on engines fueled by natural gas. The Company manufactures over three types of CHP products, such as cogeneration units that supply electricity and hot water, chillers that provide air-conditioning and hot water, and water heaters. Its commercial product line includes the InVerde, InVerde e+ and TECOGEN cogeneration units; TECOCHILL chillers; Ilios high-efficiency water heaters, and Ultera emissions control technology. Its customers include hospitals and nursing homes, hotels and motels, office and retail buildings, and military installations. Its cogeneration systems and chillers use the engine, the TecoDrive 7400 model.

About Yingli Green Energy Holding Company Limited

Yingli Green Energy Holding Company Limited is a solar panel manufacturer. The Company’s manufacturing covers the photovoltaic value chain from ingot casting and wafering through solar cell production and solar panel assembly. The Company’s end products include photovoltaic (PV) modules and PV systems of different sizes and power outputs. The Company sells PV modules under its own brand names, Yingli and Yingli Solar, to PV system integrators and distributors located in various markets around the world, including China, Japan, the United States, the United Kingdom, Chile, Algeria, Germany, France, South Africa, Turkey and Honduras. The Company’s products and services include the manufacture of polysilicon ingots and wafers, PV cells, PV modules and integrated PV systems, and the development and operation of solar projects. The Company produces approximately 800 kilogram multi-crystalline polysilicon ingots. The Company’s PV modules have output ranging from 250 to 340 watts.