Head to Head Analysis: Enphase Energy (NASDAQ:ENPH) versus Real Goods Solar (OTCMKTS:RGSEQ)

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

Analyst Ratings

This is a summary of current ratings for Real Goods Solar and Enphase Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Real Goods Solar	0	0	0	0	0.00
Enphase Energy	9	12	10	0	2.03

Enphase Energy has a consensus price target of $42.70, indicating a potential upside of 26.04%. Given Enphase Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Enphase Energy is more favorable than Real Goods Solar.

Institutional & Insider Ownership

72.1% of Enphase Energy shares are held by institutional investors. 0.9% of Real Goods Solar shares are held by company insiders. Comparatively, 2.9% of Enphase Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Real Goods Solar	N/A	N/A	N/A
Enphase Energy	11.69%	20.31%	5.84%

Valuation and Earnings

This table compares Real Goods Solar 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
Real Goods Solar	N/A	N/A	N/A	N/A	N/A
Enphase Energy	$1.47 billion	3.03	$172.13 million	$1.29	26.26

Enphase Energy has higher revenue and earnings than Real Goods Solar.

Summary

Enphase Energy beats Real Goods Solar on 9 of the 9 factors compared between the two stocks.

About Real Goods Solar

Real Goods Solar, Inc. provides solar energy systems to homeowners, and commercial building owners. It offers turnkey services, including design, procurement, permitting, build-out, grid connection, financing referrals, and warranty and customer satisfaction activities. The firm operates through three segments: Solar Division, POWERHOUSE and Other. The Solar Division segment engages the installation of solar energy systems for homeowners, including lease financing thereof, and small business commercial. The POWERHOUSE segment engages in the manufacturing and sales of solar shingles. The Other segment engages in corporate operations. The Other segment consists of corporate operations. The company was founded in 1978 and is headquartered in Denver, CO.

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.