Contrasting Enphase Energy (NASDAQ:ENPH) and SMA Solar Technology (OTCMKTS:SMTGF)

Enphase Energy (NASDAQ:ENPH) and SMA Solar Technology (OTCMKTS:SMTGF) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Earnings & Valuation

This table compares Enphase Energy and SMA Solar Technology”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.33 billion	3.50	$102.66 million	$1.28	27.84
SMA Solar Technology	N/A	N/A	N/A	($2.91)	-9.45

Enphase Energy has higher revenue and earnings than SMA Solar Technology. SMA Solar Technology is trading at a lower price-to-earnings ratio than Enphase Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

72.1% of Enphase Energy shares are owned by institutional investors. Comparatively, 12.9% of SMA Solar Technology shares are owned by institutional investors. 3.1% of Enphase Energy shares 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Enphase Energy and SMA Solar Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	13	13	6	1	1.85
SMA Solar Technology	0	1	0	0	2.00

Enphase Energy presently has a consensus target price of $46.37, suggesting a potential upside of 30.12%. Given Enphase Energy’s higher possible upside, analysts clearly believe Enphase Energy is more favorable than SMA Solar Technology.

Profitability

This table compares Enphase Energy and SMA Solar Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	11.78%	24.55%	6.63%
SMA Solar Technology	N/A	N/A	N/A

Summary

Enphase Energy beats SMA Solar Technology on 11 of the 12 factors compared between the two stocks.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, manufactures, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter, which converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control. It also provides microinverter units and related accessories, an IQ gateway; IQ batteries; the cloud-based Enlighten monitoring service; storage solutions; and electric vehicle charging solutions, as well as design, proposal, permitting, and lead generation services. The company sells its solutions to solar distributors; and directly to large installers, original equipment manufacturers, strategic partners, and homeowners, as well as through its legacy product upgrade program or online store. Enphase Energy, Inc. was incorporated in 2006 and is headquartered in Fremont, California.

About SMA Solar Technology

SMA Solar Technology AG, together with its subsidiaries, engages in development, production, and sale of PV and battery inverters, transformers, chokes, monitoring systems for PV systems, and charging solutions for electric vehicles in Germany and internationally. It operates through Home Solutions, Commercial and Industrial Solutions, and Large Scale and Project Solutions segments. The company offers string and central solar inverters for various module types; battery inverters for high voltage batteries, on- and off- grid applications, commercial and industrial storage solutions, large scale storage solutions, and accessories; medium-voltage technology products; and DC-DC converters. It also provides E-mobility charging solutions; monitoring and control solutions for PV systems; and energy data services, as well as digital solutions to design, operate, and service PV systems and energy systems. The company was formerly known as SMA Technologie AG and changed its name to SMA Solar Technology AG in June 2008. SMA Solar Technology AG was founded in 1981 and is headquartered in Niestetal, Germany.