Enphase Energy vs NextEra Energy Which Performs Better?

Enphase Energy and NextEra Energy are two leading companies in the clean energy sector, both offering innovative solutions for renewable energy production. Enphase Energy specializes in solar power systems, providing cutting-edge technologies for residential and commercial installations. NextEra Energy, on the other hand, is a diversified energy company with a focus on wind and solar power generation. Investors looking to capitalize on the growing demand for clean energy may consider these stocks for their potential long-term growth and sustainability.

Enphase Energy or NextEra Energy?

When comparing Enphase Energy and NextEra Energy, 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 NextEra Energy.

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 NextEra Energy has a dividend yield of 3.33%. 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, NextEra Energy reports a 5-year dividend growth of -15.88% year and a payout ratio of 59.48%.

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 140.27 and NextEra Energy's P/E ratio at 22.42. 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 9.25 while NextEra Energy's P/B ratio is 3.11.

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 NextEra Energy's is 0.57%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enphase Energy's ROE at 6.60% and NextEra Energy's ROE at 14.24%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $62.50 for Enphase Energy and $75.74 for NextEra Energy. Over the past year, Enphase Energy's prices ranged from $62.50 to $141.63, with a yearly change of 126.59%. NextEra Energy's prices fluctuated between $53.81 and $86.10, with a yearly change of 60.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.