Analyzing Enphase Energy (NASDAQ:ENPH) & Teradyne (NASDAQ:TER)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Teradyne and Enphase Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teradyne	0	5	10	1	2.75
Enphase Energy	3	11	9	0	2.26

Teradyne presently has a consensus target price of $396.80, suggesting a potential upside of 4.50%. Enphase Energy has a consensus target price of $45.79, suggesting a potential upside of 25.98%. Given Enphase Energy’s higher probable upside, analysts clearly believe Enphase Energy is more favorable than Teradyne.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teradyne	25.77%	39.93%	27.67%
Enphase Energy	10.09%	13.31%	4.66%

Volatility & Risk

Teradyne has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500.

Earnings and Valuation

This table compares Teradyne and Enphase Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teradyne	$3.19 billion	18.61	$554.05 million	$7.29	52.09
Enphase Energy	$1.47 billion	3.26	$172.13 million	$1.00	36.35

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

Institutional and Insider Ownership

99.8% of Teradyne shares are held by institutional investors. Comparatively, 72.1% of Enphase Energy shares are held by institutional investors. 0.2% of Teradyne shares are held by insiders. Comparatively, 2.9% of Enphase Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Teradyne beats Enphase Energy on 13 of the 15 factors compared between the two stocks.

About Teradyne

Teradyne, Inc. designs, develops, manufactures, and sells automated test systems and robotics products worldwide. It operates through four segments; Semiconductor Test, System Test, Robotics, and Wireless Test. The Semiconductor Test segment offers products and services for wafer level and device package testing of semiconductor devices in automotive, industrial, communications, consumer, smartphones, cloud, computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices, including microcontrollers; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage and system level test systems; and circuit-board test and inspection systems. The Wireless Test segment provides wireless test solutions for silicon validation, wireless module manufacturing, and wireless end device manufacturing under the LitePoint brand. This segment also offers IQxel-MX and IQxel-MW7G series products for edge measurement performance in the manufacturing of connectivity products; IQxstream-5G and IQgig-5G family products to support 4G and 5G technologies; and IQgig-UWB+ for certification and manufacturing test support for ultra wideband products. The Robotics segment provides collaborative robotic arms, autonomous mobile robots, and advanced robotic control software for manufacturing, logistics, and industrial customers. The company was incorporated in 1960 and is headquartered in North Reading, Massachusetts.

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.