Having roller-coaster-like market now, fundamental analysis may not help, however, it is always good to have an idea how the companies have performed.
Enphase Energy Inc $Enphase Energy(ENPH)$and Solaredge Technologies Inc$SolarEdge(SEDG)$, the two leaders in energy technology are also the leading supplier of microinverter. Let’s have a quick comparison between the two with some data from their latest Q1 report.
ENPH grew its revenue slower than SEDG but reported better gross margin and net margin. Furthermore ENPH is able to sustain its gross margin.
ENPH’s GAAP gross margin was 40.1% in Q1’2022, 39.6% in Q4’2021 and 40.7% in Q1’2021.
SEDG’s GAAP gross margin was 27.3% in Q1’2022, 29.1% in Q4’2021 and 34.5% in Q1’2021.
P/S (price to sale ratio) of ENPH is more than double of SEDG’s. Obviously, ENPH is expected to have higher grow in future.
However, in term of PE ratio, whether by GAAP EPS or non-GAAP EPS, the figure does not vary much between the two. Since both companies are mature companies with stable earning, I think PE ratio is a good gauge to compare. What do you think?
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