SunPower Corporation (SPWR) versus Enphase Energy (NASDAQ:ENPH) Critical Survey
SunPower Corporation (NASDAQ: SPWR) and Enphase Energy (NASDAQ:ENPH) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, profitabiliy, earnings, dividends and institutional ownership.
Institutional & Insider Ownership
25.5% of SunPower Corporation shares are owned by institutional investors. Comparatively, 26.2% of Enphase Energy shares are owned by institutional investors. 0.9% of SunPower Corporation shares are owned by company insiders. Comparatively, 17.4% of Enphase Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares SunPower Corporation and Enphase Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SunPower Corporation||$2.57 billion||0.59||-$30.84 million||($3.76)||-2.89|
|Enphase Energy||$313.22 million||0.23||-$44.98 million||($1.27)||-0.68|
SunPower Corporation has higher revenue and earnings than Enphase Energy. SunPower Corporation is trading at a lower price-to-earnings ratio than Enphase Energy, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
SunPower Corporation has a beta of 3.07, suggesting that its share price is 207% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
This table compares SunPower Corporation and Enphase Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for SunPower Corporation and Enphase Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SunPower Corporation presently has a consensus price target of $9.30, suggesting a potential downside of 14.27%. Enphase Energy has a consensus price target of $2.08, suggesting a potential upside of 141.32%. Given Enphase Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Enphase Energy is more favorable than SunPower Corporation.
SunPower Corporation beats Enphase Energy on 7 of the 13 factors compared between the two stocks.
SunPower Corporation Company Profile
SunPower Corporation is a global energy company. The Company delivers complete solar solutions to residential, commercial, and power plant customers. The Company’s segments include Residential Segment, Commercial Segment and Power Plant Segment. The Residential and Commercial Segments combined are referred to as Distributed Generation. The Company offers solar module technology and solar power systems that are designed to generate electricity over a system life over 25 years; Integrated Smart Energy software solutions that enable customers to manage and optimize the cooperation center of excellence (CCOE) measurement; Installation, construction, and ongoing maintenance and monitoring services; and financing solutions that provide customers a range of options for purchasing or leasing solar products at competitive energy rates. The Company offers a set of residential solutions that deliver value to homeowners and its dealer partners.
Enphase Energy Company Profile
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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