Comparing Enphase Energy (NASDAQ:ENPH) and NVIDIA (NASDAQ:NVDA)

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

Analyst Ratings

This is a summary of recent ratings and price targets for Enphase Energy and NVIDIA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	3	11	9	0	2.26
NVIDIA	0	2	50	3	3.02

Enphase Energy currently has a consensus target price of $45.79, indicating a potential upside of 24.71%. NVIDIA has a consensus target price of $324.34, indicating a potential upside of 52.87%. Given NVIDIA’s stronger consensus rating and higher probable upside, analysts plainly believe NVIDIA is more favorable than Enphase Energy.

Insider and Institutional Ownership

72.1% of Enphase Energy shares are owned by institutional investors. Comparatively, 65.3% of NVIDIA shares are owned by institutional investors. 2.9% of Enphase Energy shares are owned by insiders. Comparatively, 3.9% of NVIDIA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Enphase Energy has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, NVIDIA has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	10.09%	13.31%	4.66%
NVIDIA	63.66%	96.04%	71.00%

Valuation & Earnings

This table compares Enphase Energy and NVIDIA”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.33 billion	3.65	$172.13 million	$1.00	36.72
NVIDIA	$215.94 billion	23.68	$120.07 billion	$7.91	26.82

NVIDIA has higher revenue and earnings than Enphase Energy. NVIDIA 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

NVIDIA beats Enphase Energy on 13 of the 15 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 NVIDIA

NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.