FTC Solar (NASDAQ:FTCI) & Enphase Energy (NASDAQ:ENPH) Financial Analysis

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Enphase Energy and FTC Solar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	12	14	10	0	1.94
FTC Solar	0	2	1	0	2.33

Enphase Energy presently has a consensus price target of $55.48, suggesting a potential upside of 46.15%. FTC Solar has a consensus price target of $4.25, suggesting a potential downside of 39.11%. Given Enphase Energy’s higher possible upside, analysts clearly believe Enphase Energy is more favorable than FTC Solar.

Institutional & Insider Ownership

72.1% of Enphase Energy shares are owned by institutional investors. Comparatively, 45.4% of FTC Solar shares are owned by institutional investors. 3.1% of Enphase Energy shares are owned by company insiders. Comparatively, 21.0% of FTC Solar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Enphase Energy and FTC Solar’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%
FTC Solar	-73.04%	-262.78%	-55.79%

Risk and Volatility

Enphase Energy has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, FTC Solar has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Enphase Energy and FTC Solar”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	3.73	$102.66 million	$1.28	29.66
FTC Solar	$47.35 million	2.19	-$48.61 million	($3.92)	-1.78

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

Summary

Enphase Energy beats FTC Solar on 12 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 FTC Solar

FTC Solar, Inc. engages in the provision of solar tracker systems, software, and engineering services in the United States, Asia, Europe, the Middle East, North Africa, South Africa, and Australia. The company offers a self-powered, two-panel in-portrait, and single-axis tracker solution under the Voyager brand name; and a one module-in-portrait solar tracker solution under the Pioneer brand name. Its customers include project developers and solar asset owners, as well as engineering, procurement, and construction contractors that design and build solar energy projects. The company was incorporated in 2017 and is headquartered in Austin, Texas.