Enphase Energy vs First Solar

Enphase Energy and First Solar are two leading players in the renewable energy sector, each specializing in different aspects of solar technology. Enphase Energy is known for its microinverter systems, providing a more efficient way to convert solar power into usable electricity. On the other hand, First Solar is a major producer of solar panels with a focus on utility-scale projects. Both companies have seen significant growth in recent years as the demand for clean energy solutions continues to rise. Investors interested in the renewable energy sector may find these stocks appealing for their potential for long-term growth and sustainability.

Enphase Energy or First Solar?

When comparing Enphase Energy and First Solar, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Enphase Energy and First Solar.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Enphase Energy has a dividend yield of -%, while First Solar has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enphase Energy reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, First Solar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Enphase Energy P/E ratio at 96.33 and First Solar's P/E ratio at 17.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Enphase Energy P/B ratio is 14.11 while First Solar's P/B ratio is 2.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Enphase Energy has seen a 5-year revenue growth of 4.15%, while First Solar's is 0.45%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enphase Energy's ROE at 13.62% and First Solar's ROE at 17.73%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $90.94 for Enphase Energy and $201.85 for First Solar. Over the past year, Enphase Energy's prices ranged from $73.49 to $141.63, with a yearly change of 92.72%. First Solar's prices fluctuated between $129.22 and $306.77, with a yearly change of 137.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.