Smart Global (NASDAQ:SGH) and Enphase Energy (NASDAQ:ENPH) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.
Volatility and Risk
Smart Global has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Valuation & Earnings
This table compares Smart Global and Enphase Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Smart Global||$1.29 billion||0.57||$119.46 million||$6.00||5.28|
|Enphase Energy||$316.16 million||9.54||-$11.63 million||($0.12)||-206.00|
Smart Global has higher revenue and earnings than Enphase Energy. Enphase Energy is trading at a lower price-to-earnings ratio than Smart Global, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.7% of Smart Global shares are owned by institutional investors. Comparatively, 43.4% of Enphase Energy shares are owned by institutional investors. 4.2% of Smart Global shares are owned by insiders. Comparatively, 12.5% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Smart Global and Enphase Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Smart Global and Enphase Energy, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Smart Global presently has a consensus price target of $39.20, indicating a potential upside of 23.70%. Enphase Energy has a consensus price target of $35.06, indicating a potential upside of 41.81%. Given Enphase Energy’s higher possible upside, analysts clearly believe Enphase Energy is more favorable than Smart Global.
Smart Global beats Enphase Energy on 10 of the 14 factors compared between the two stocks.
Smart Global Company Profile
SMART Global Holdings, Inc. designs, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture modules and other products; DRAM modules for desktop, notebook, and server applications, as well as for use in smartphones; and specialty DRAM modules for industrial, communications, and networking applications, as well as develops specialized memory module designs based on original equipment manufacturer (OEM) requirements. It also provides flash memory, USB, and serial advanced technology attachment products primarily for use in communications equipment, printers, servers and storage products, switches, and routers; and aerospace, automotive, and defense industries, as well as industrial applications. In addition, the company provides networking, storage, and compute solutions, as well as HPC software to manage and use on premise and cloud computing clusters. Further, it offers supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging. SMART Global Holdings, Inc. sells its products to OEMs through direct sales force and independent sales representatives in North America, Latin America, Asia, and Europe. The company was formerly known as Saleen Holdings, Inc. and changed its name to SMART Global Holdings, Inc. in August 2014. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Newark, California.
Enphase Energy Company Profile
Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells home energy solutions for the solar photovoltaic industry in the United States and internationally. The company offers semiconductor-based microinverter that converts energy at the individual solar module level and combines with its proprietary networking and software technologies to provide energy monitoring and control services. It sells its solutions primarily to distributors, as well as directly to large installers, original equipment manufacturers, strategic partners, and homeowners. Enphase Energy, Inc. was founded in 2006 and is headquartered in Fremont, California.
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