Enphase Energy (NASDAQ: ENPH) and First Solar (NASDAQ:FSLR) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, valuation, profitability, risk, analyst recommendations and institutional ownership.
This table compares Enphase Energy and First Solar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Enphase Energy and First Solar’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enphase Energy||$308.74 million||0.24||-$35.28 million||($1.05)||-0.83|
|First Solar||$2.57 billion||1.95||$296.64 million||($4.84)||-9.93|
First Solar has higher revenue and earnings than Enphase Energy. First Solar is trading at a lower price-to-earnings ratio than Enphase Energy, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Enphase Energy and First Solar, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Enphase Energy currently has a consensus price target of $2.10, suggesting a potential upside of 142.33%. First Solar has a consensus price target of $44.37, suggesting a potential downside of 7.68%. Given Enphase Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Enphase Energy is more favorable than First Solar.
Institutional and Insider Ownership
25.7% of Enphase Energy shares are held by institutional investors. Comparatively, 60.3% of First Solar shares are held by institutional investors. 17.4% of Enphase Energy shares are held by insiders. Comparatively, 0.4% of First Solar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Enphase Energy has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, First Solar has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.
First Solar beats Enphase Energy on 9 of the 13 factors compared between the two stocks.
About Enphase Energy
Enphase Energy, Inc. is a provider of energy management solutions. The Company is engaged in designing, developing, manufacturing and selling microinverter systems for the solar photovoltaic industry. Its semiconductor-based microinverter system converts direct current (DC) electricity to alternating current (AC) electricity. Its microinverter system consists of three components: Enphase microinverters, an Envoy gateway and Enlighten cloud-based software. Its Enphase microinverters provide power conversion at the individual solar module level by a digital architecture that incorporates custom application specific integrated circuits (ASIC), specialized power electronics devices, and an embedded software subsystem. Envoy bi-directional communications gateway provides collecting and sending data to Enlighten software. Enlighten cloud-based software provides the capabilities to remotely monitor, manage, and maintain an individual system or a fleet of systems.
About First Solar
First Solar, Inc. is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with a thin-film semiconductor technology. The Company also develops, designs, constructs and sells PV solar power systems that primarily use the modules it manufactures. It operates through two segments: components and systems. The components segment is engaged in the design, manufacture and sale of cadmium telluride (CdTe) solar modules, which convert sunlight into electricity. The systems segment includes the development, construction, operation and maintenance of PV solar power systems, which primarily use its solar modules. In addition, the Company provides operations and maintenance (O&M) services to system owners that use solar modules manufactured by it or by third-party manufacturers. The Company’s solar modules had an average rated power per module of approximately 114 watts, as of December 31, 2016.
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