Acacia Communications (ACIA) vs. ReneSola (SOL) Head-To-Head Survey

Acacia Communications (NASDAQ:ACIA) and ReneSola (NYSE:SOL) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

90.8% of Acacia Communications shares are owned by institutional investors. Comparatively, 10.3% of ReneSola shares are owned by institutional investors. 33.2% of Acacia Communications shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Acacia Communications and ReneSola’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Acacia Communications $385.17 million 3.96 $38.50 million $1.19 31.60
ReneSola $102.97 million 0.74 $34.45 million $0.13 15.38

Acacia Communications has higher revenue and earnings than ReneSola. ReneSola is trading at a lower price-to-earnings ratio than Acacia Communications, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Acacia Communications has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, ReneSola has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Acacia Communications and ReneSola, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Acacia Communications 1 5 9 0 2.53
ReneSola 0 1 0 0 2.00

Acacia Communications currently has a consensus price target of $40.27, suggesting a potential upside of 7.10%. ReneSola has a consensus price target of $2.00, suggesting a potential upside of 0.00%. Given Acacia Communications’ stronger consensus rating and higher possible upside, equities analysts clearly believe Acacia Communications is more favorable than ReneSola.

Profitability

This table compares Acacia Communications and ReneSola’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Acacia Communications -4.30% 2.66% 2.25%
ReneSola N/A N/A N/A

Summary

Acacia Communications beats ReneSola on 13 of the 14 factors compared between the two stocks.

About Acacia Communications

Acacia Communications, Inc. develops, manufactures, and sells high-speed coherent optical interconnect products in the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. Its products include a series of low-power coherent digital signal processor application-specific integrated circuits and silicon photonic integrated circuits that are integrated into families of optical interconnect modules with transmission speeds ranging from 100 to 400 gigabits per second for use in long-haul, metro, and inter-data center markets. The company sells its products through a direct sales force to network equipment manufacturers, network operators, and cloud service providers. Acacia Communications, Inc. was founded in 2009 and is headquartered in Maynard, Massachusetts.

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.

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