Contrasting Enovix (NASDAQ:ENVX) and Nextpower (NASDAQ:NXT)

Nextpower (NASDAQ:NXT) and Enovix (NASDAQ:ENVX) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Risk and Volatility

Nextpower has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Enovix has a beta of 2.49, meaning that its stock price is 149% more volatile than the S&P 500.

Valuation & Earnings

This table compares Nextpower and Enovix”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextpower	$3.63 billion	3.20	$585.88 million	$3.86	19.81
Enovix	$31.82 million	18.48	-$156.74 million	($0.81)	-3.31

Nextpower has higher revenue and earnings than Enovix. Enovix is trading at a lower price-to-earnings ratio than Nextpower, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nextpower and Enovix, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextpower	0	4	23	1	2.89
Enovix	2	3	6	1	2.50

Nextpower currently has a consensus target price of $139.77, indicating a potential upside of 82.75%. Enovix has a consensus target price of $10.77, indicating a potential upside of 301.97%. Given Enovix’s higher probable upside, analysts clearly believe Enovix is more favorable than Nextpower.

Profitability

This table compares Nextpower and Enovix’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nextpower	16.36%	26.29%	15.02%
Enovix	-473.89%	-64.50%	-19.31%

Institutional and Insider Ownership

67.4% of Nextpower shares are owned by institutional investors. Comparatively, 50.9% of Enovix shares are owned by institutional investors. 0.8% of Nextpower shares are owned by company insiders. Comparatively, 12.7% of Enovix shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Nextpower beats Enovix on 10 of the 14 factors compared between the two stocks.

About Nextpower

Nextpower, formerly known as Nextracker, an energy solutions company, provides solar trackers and software solutions for utility-scale and distributed generation solar projects in the United States and internationally. The company offers tracking solutions, which includes NX Horizon, a solar tracking solution; and NX Horizon-XTR, a terrain-following tracker designed to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain. It also provides TrueCapture, a self-adjusting tracker control system, which boosts solar power plant production by optimizing the position of individual tracker row in response to site features, such as varying topography and changing weather conditions; and NX Navigator, that assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company was founded in 2013 and is headquartered in Fremont, California. As of March 31, 2024 Nextracker Inc. (Nextpower) was formerly a subsidiary of Flex Ltd.

About Enovix

Enovix Corporation designs develops and manufactures silicon-anode lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.