Enphase Energy (NASDAQ:ENPH) & Nextpower (NASDAQ:NXT) Head-To-Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nextpower	17.08%	35.05%	18.13%
Enphase Energy	12.93%	25.67%	7.03%

Volatility and Risk

Nextpower has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nextpower and Enphase Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nextpower	0	10	16	1	2.67
Enphase Energy	13	12	5	0	1.73

Nextpower currently has a consensus target price of $95.76, indicating a potential upside of 5.04%. Enphase Energy has a consensus target price of $39.75, indicating a potential upside of 21.38%. Given Enphase Energy’s higher possible upside, analysts clearly believe Enphase Energy is more favorable than Nextpower.

Insider and Institutional Ownership

67.4% of Nextpower shares are held by institutional investors. Comparatively, 72.1% of Enphase Energy shares are held by institutional investors. 0.6% of Nextpower shares are held by company insiders. Comparatively, 3.1% of Enphase Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nextpower	$2.96 billion	4.57	$509.17 million	$3.85	23.68
Enphase Energy	$1.33 billion	3.22	$102.66 million	$1.45	22.59

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

Summary

Nextpower beats Enphase Energy on 12 of the 15 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 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.