Enphase Energy (NASDAQ:ENPH) and Tigo Energy (NASDAQ:TYGO) Head to Head Review

Enphase Energy (NASDAQ:ENPH) and Tigo Energy (NASDAQ:TYGO) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Enphase Energy and Tigo Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	6	10	9	0	2.12
Tigo Energy	1	0	2	0	2.33

Enphase Energy presently has a consensus price target of $40.68, indicating a potential downside of 3.14%. Tigo Energy has a consensus price target of $6.47, indicating a potential upside of 67.10%. Given Tigo Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Tigo Energy is more favorable than Enphase Energy.

Volatility & Risk

Enphase Energy has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Tigo Energy has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	9.64%	16.88%	5.39%
Tigo Energy	3.07%	-41.48%	-9.99%

Valuation and Earnings

This table compares Enphase Energy and Tigo Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.47 billion	3.76	$172.13 million	$1.01	41.58
Tigo Energy	$103.54 million	2.84	-$1.88 million	$0.04	96.75

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

Insider & Institutional Ownership

72.1% of Enphase Energy shares are held by institutional investors. Comparatively, 15.7% of Tigo Energy shares are held by institutional investors. 2.9% of Enphase Energy shares are held by company insiders. Comparatively, 26.6% of Tigo Energy shares are held 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.

Summary

Enphase Energy beats Tigo Energy on 9 of the 14 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 Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.