Enphase Energy (NASDAQ: ENPH) and Canadian Solar (NASDAQ:CSIQ) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.
Risk & Volatility
Enphase Energy has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Canadian Solar has a beta of 3.12, indicating that its share price is 212% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Enphase Energy and Canadian Solar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Enphase Energy presently has a consensus target price of $2.10, suggesting a potential upside of 61.54%. Canadian Solar has a consensus target price of $17.29, suggesting a potential upside of 6.05%. Given Enphase Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Enphase Energy is more favorable than Canadian Solar.
Insider & Institutional Ownership
19.8% of Enphase Energy shares are owned by institutional investors. Comparatively, 41.3% of Canadian Solar shares are owned by institutional investors. 17.4% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Enphase Energy and Canadian Solar’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Enphase Energy||$308.74 million||0.36||-$35.28 million||($1.05)||-1.24|
|Canadian Solar||$2.70 billion||0.35||$150.16 million||$0.44||37.05|
Canadian Solar has higher revenue and earnings than Enphase Energy. Enphase Energy is trading at a lower price-to-earnings ratio than Canadian Solar, indicating that it is currently the more affordable of the two stocks.
This table compares Enphase Energy and Canadian Solar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Canadian Solar beats Enphase Energy on 8 of the 13 factors compared between the two stocks.
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.
Canadian Solar Company Profile
Canadian Solar Inc. is a solar power company. The Company is a provider of solar power products, services and system solutions with operations in North America, South America, Europe, Africa, the Middle East, Australia and Asia. Its segments include module segment, energy development segment and electricity generation segment. It designs, develops and manufactures solar wafers, solar cells and solar power products. The module segment primarily involves the design, development, manufacturing and sale of a range of solar power products, including standard solar modules and specialty solar products, and solar system kits. Its energy development segment consists of solar power project development, engineering, procurement and construction services, and operation and maintenance services. Its electricity generation segment consists of holding solar power projects for the purpose of generating income from the sale of electricity to the local or national grid or other power purchasers.
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