Enphase Energy (NASDAQ:ENPH) vs. Tigo Energy (NASDAQ:TYGO) Head-To-Head Analysis

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

Analyst Ratings

This is a breakdown of current recommendations for Enphase Energy and Tigo Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	6	10	9	0	2.12
Tigo Energy	1	0	2	0	2.33

Enphase Energy currently has a consensus target price of $40.94, indicating a potential downside of 22.97%. Tigo Energy has a consensus target price of $6.47, indicating a potential upside of 68.40%. Given Tigo Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Tigo Energy is more favorable than Enphase Energy.

Volatility and Risk

Enphase Energy has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Tigo Energy has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

72.1% of Enphase Energy shares are held by institutional investors. Comparatively, 15.7% of Tigo Energy shares are held by institutional investors. 2.9% of Enphase Energy shares are held by insiders. Comparatively, 26.6% of Tigo Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	9.64%	16.88%	5.39%
Tigo Energy	3.07%	-41.48%	-9.99%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.47 billion	4.76	$172.13 million	$1.01	52.62
Tigo Energy	$109.89 million	2.65	-$1.88 million	$0.04	96.00

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

Summary

Enphase Energy beats Tigo Energy on 9 of the 14 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 Tigo Energy

Tigo Energy, Inc. provides solar and energy storage solutions for the solar industry. It offers module level power electronics (MLPEs) to maximize the energy output of individual solar modules. The company also provides GO Energy Storage Systems that provide solar energy storage management capabilities; and Energy Intelligence (EI) platform, which provides monitoring and energy demand forecasting capabilities. In addition, it offers GO Battery that provides energy resilience in the event of a grid outage and optimizes energy consumption based on rate plans for home energy needs; GO Inverter, which offers energy conversion for home consumption or export to the grid; GO Link/Automatic Transfer Switch (ATS), a component for battery backup of on-grid systems; and GO Electric Vehicle (EV) Charger to reduce transportation costs. The company serves residential, commercial, and utility sectors through distributors and solar installers in North and South America, Europe, the Middle East, Africa, and the Asia-Pacific regions. Tigo Energy, Inc. was founded in 2007 and is headquartered in Campbell, California.