CSLM Acquisition (NASDAQ:SPWR) & Enphase Energy (NASDAQ:ENPH) Head-To-Head Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CSLM Acquisition	-15.12%	-16.64%	-23.28%
Enphase Energy	11.69%	20.31%	5.84%

Volatility and Risk

CSLM Acquisition has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for CSLM Acquisition and Enphase Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSLM Acquisition	1	0	1	0	2.00
Enphase Energy	9	12	10	0	2.03

CSLM Acquisition presently has a consensus price target of $5.40, indicating a potential upside of 357.63%. Enphase Energy has a consensus price target of $42.70, indicating a potential upside of 31.48%. Given CSLM Acquisition’s higher possible upside, equities research analysts plainly believe CSLM Acquisition is more favorable than Enphase Energy.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSLM Acquisition	$300.00 million	0.44	-$45.35 million	($0.47)	-2.51
Enphase Energy	$1.47 billion	2.91	$172.13 million	$1.29	25.18

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

Institutional & Insider Ownership

47.4% of CSLM Acquisition shares are held by institutional investors. Comparatively, 72.1% of Enphase Energy shares are held by institutional investors. 42.6% of CSLM Acquisition shares are held by company insiders. Comparatively, 2.9% of Enphase Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Enphase Energy beats CSLM Acquisition on 12 of the 14 factors compared between the two stocks.

About CSLM Acquisition

Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.

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.