Better Buy: First Solar vs. Canadian Solar
The two top solar companies, First Solar (NASDAQ: FSLR) and Canadian Solar (NASDAQ: CSIQ), have many things in common. Both listed on the public markets at around the same time. Each company generated annual revenue of roughly $3 billion last year. Moreover, both companies primarily sell solar modules, develop as well as operate solar power systems, and provide related services. Let's take a look at why, despite these similarities, one offers a better investment opportunity than the other.
Canadian Solar has operations in 23 countries. In 2019, the company earned 44% of its revenues from the Americas, 32% from Asia, and 24% from Europe and other regions. By contrast, First Solar earned 87% of its 2019 revenue from the U.S. Clearly, Canadian Solar is more geographically diversified than First Solar. That should make Canadian Solar's revenues relatively stable if any one market faces headwinds. It also gives Canadian Solar an advantage in new markets where it has already made headway.
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Source Fool.com
