Enphase Energy (NASDAQ: ENPH) is one of 12 publicly-traded companies in the “Photovoltaic Solar Systems & Equipment” industry, but how does it contrast to its peers? We will compare Enphase Energy to similar businesses based on the strength of its analyst recommendations, earnings, profitability, risk, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares Enphase Energy and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Enphase Energy $322.59 million -$67.46 million -3.18
Enphase Energy Competitors $1.32 billion -$58.64 million -0.12

Enphase Energy’s peers have higher revenue and earnings than Enphase Energy. Enphase Energy is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Enphase Energy has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500. Comparatively, Enphase Energy’s peers have a beta of 1.64, meaning that their average stock price is 64% more volatile than the S&P 500.

Insider and Institutional Ownership

19.9% of Enphase Energy shares are owned by institutional investors. Comparatively, 40.3% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by institutional investors. 15.9% of Enphase Energy shares are owned by company insiders. Comparatively, 16.0% of shares of all “Photovoltaic Solar Systems & Equipment” companies are owned by company 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.

Profitability

This table compares Enphase Energy and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enphase Energy -18.66% -1,232.10% -25.05%
Enphase Energy Competitors -13.39% -113.38% -3.84%

Analyst Ratings

This is a summary of current ratings and recommmendations for Enphase Energy and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enphase Energy 0 3 2 0 2.40
Enphase Energy Competitors 174 585 856 55 2.47

Enphase Energy presently has a consensus price target of $1.56, suggesting a potential downside of 32.65%. As a group, “Photovoltaic Solar Systems & Equipment” companies have a potential downside of 12.64%. Given Enphase Energy’s peers stronger consensus rating and higher probable upside, analysts plainly believe Enphase Energy has less favorable growth aspects than its peers.

Summary

Enphase Energy peers beat Enphase Energy on 12 of the 12 factors compared.

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.

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