Reviewing Enphase Energy (NASDAQ:ENPH) & Xinyi Solar (OTCMKTS:XNYIF)

Enphase Energy (NASDAQ:ENPH) and Xinyi Solar (OTCMKTS:XNYIF) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	11.78%	24.55%	6.63%
Xinyi Solar	N/A	N/A	N/A

Earnings & Valuation

This table compares Enphase Energy and Xinyi Solar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.33 billion	3.55	$102.66 million	$1.28	28.19
Xinyi Solar	N/A	N/A	N/A	N/A	N/A

Enphase Energy has higher revenue and earnings than Xinyi Solar.

Analyst Ratings

This is a breakdown of current ratings and price targets for Enphase Energy and Xinyi Solar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	12	13	10	0	1.94
Xinyi Solar	1	0	0	0	1.00

Enphase Energy presently has a consensus target price of $55.82, indicating a potential upside of 54.72%. Given Enphase Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Enphase Energy is more favorable than Xinyi Solar.

Institutional and Insider Ownership

72.1% of Enphase Energy shares are owned by institutional investors. 3.1% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Enphase Energy beats Xinyi Solar on 9 of the 9 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 Xinyi Solar

Xinyi Solar Holdings Limited, an investment holding company, produces and sells solar glass products in the People's Republic of China, rest of Asia, North America, Europe, and internationally. It operates in two segments, Sales of Solar Glass and Solar Farm Business. The company offers ultra-clear patterned solar glasses, back glasses, and anti-reflective coating solar glasses to photovoltaic module manufacturers. It also develops, operates, and manages solar farms; and provides engineering, procurement, and construction services. In addition, the company engages in the provision of solar power systems; and trading of solar glass products. Xinyi Solar Holdings Limited was founded in 2006 and is headquartered in Wuhu, the People's Republic of China.