Semtech (NASDAQ:SMTC) vs. Enphase Energy (NASDAQ:ENPH) Head-To-Head Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Semtech	13.11%	21.74%	8.98%
Enphase Energy	10.09%	13.31%	4.66%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Semtech	0	3	15	1	2.89
Enphase Energy	3	11	9	0	2.26

Semtech currently has a consensus price target of $204.71, suggesting a potential upside of 20.89%. Enphase Energy has a consensus price target of $44.34, suggesting a potential upside of 34.08%. Given Enphase Energy’s higher possible upside, analysts clearly believe Enphase Energy is more favorable than Semtech.

Institutional & Insider Ownership

72.1% of Enphase Energy shares are owned by institutional investors. 0.4% of Semtech shares are owned by insiders. Comparatively, 2.9% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Semtech has a beta of 2.35, indicating that its share price is 135% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Semtech	$1.05 billion	15.05	-$40.38 million	$1.51	112.14
Enphase Energy	$1.47 billion	2.97	$172.13 million	$1.00	33.07

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

Summary

Semtech beats Enphase Energy on 10 of the 15 factors compared between the two stocks.

About Semtech

Semtech Corporation designs, develops, manufactures, and markets analog and mixed-signal semiconductor and advanced algorithms. It provides signal integrity products, including a portfolio of optical data communications and video transport products used in various infrastructure, and industrial applications; a portfolio of integrated circuits for data centers, enterprise networks, passive optical networks, wireless base station optical transceivers, and high-speed interface applications; and video products for broadcast applications, as well as video-over-IP technology for professional audio video applications. The company offers protection products, such as filter and termination devices that are integrated with the transient voltage suppressor devices, which protect electronic systems from voltage spikes; and sensing products comprising a portfolio of specialized radio frequency products used in various industrial, medical, and communications applications, as well as specialized sensing products. In addition, it provides switching voltage regulators, combination switching and linear regulators, smart regulators, isolated switches, and wireless charging related products. Further, it offers portfolio of IoT solutions, such as modules, gateways, routers, and connected services; and portfolio of connected services, including wireless connectivity and cloud-based services for industrial, medical and communications applications. The company serves original equipment manufacturers and industrial end-markets. It sells its products directly, as well as through independent sales representative firms and independent distributors in Asia- Pacific, North America, and Europe. Semtech Corporation was incorporated in 1960 and is headquartered in Camarillo, California.

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.