Qorvo (NASDAQ:QRVO – Get Free Report) and Enphase Energy (NASDAQ:ENPH – Get Free Report) are both mid-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.
Risk and Volatility
Qorvo has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.
Profitability
This table compares Qorvo and Enphase Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Qorvo | 0.71% | 12.41% | 6.74% |
| Enphase Energy | 7.72% | 15.62% | 4.32% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Qorvo | 3 | 12 | 4 | 0 | 2.05 |
| Enphase Energy | 3 | 16 | 14 | 0 | 2.33 |
Qorvo presently has a consensus target price of $95.84, suggesting a potential upside of 26.72%. Enphase Energy has a consensus target price of $90.42, suggesting a potential upside of 44.19%. Given Enphase Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Enphase Energy is more favorable than Qorvo.
Valuation & Earnings
This table compares Qorvo and Enphase Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Qorvo | $3.79 billion | 1.86 | -$70.32 million | $0.28 | 270.11 |
| Enphase Energy | $1.33 billion | 6.24 | $102.66 million | $0.74 | 84.74 |
Enphase Energy has lower revenue, but higher earnings than Qorvo. Enphase Energy is trading at a lower price-to-earnings ratio than Qorvo, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
88.6% of Qorvo shares are held by institutional investors. Comparatively, 72.1% of Enphase Energy shares are held by institutional investors. 0.5% of Qorvo shares are held by insiders. Comparatively, 3.4% of Enphase Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Enphase Energy beats Qorvo on 10 of the 14 factors compared between the two stocks.
About Qorvo
Qorvo, Inc. engages in development and commercialization of technologies and products for wireless, wired, and power markets. It operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG), and Advanced Cellular Group (ACG). The HPA segment supplies radio frequency and power management solutions for automotive, defense and aerospace, cellular infrastructure, broadband, and other markets. The CSG segment supplies connectivity and sensor components and systems featuring various technologies, such as UWB, Matter, Bluetooth Low Energy, Zigbee, Thread, Wi-Fi, cellular IoT, and MEMS-/BAW-based sensors. It serves markets, such as smart home, industrial automation, automotive, smartphones, wearables, gaming, and industrial and enterprise access points. The ACG segment supplies cellular RF solutions for smartphones, wearables, laptops, tablets, and various other devices. The company also offers foundry services for defense primes and other defense and aerospace customers. The company sells its products directly to original equipment manufacturers and original design manufacturers, as well as through a network of sales representative firms and distributors. It operates in the United States, China, other Asian countries, Taiwan, and Europe. The company was founded in 1957 and is headquartered in Greensboro, North Carolina.
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.
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