Contrasting Enphase Energy (NASDAQ:ENPH) & ams-OSRAM (OTCMKTS:AMSSY)

ams-OSRAM (OTCMKTS:AMSSY) and Enphase Energy (NASDAQ:ENPH) are both mid-cap technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ams-OSRAM	-9.74%	-7.58%	-1.01%
Enphase Energy	10.09%	13.31%	4.66%

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for ams-OSRAM and Enphase Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ams-OSRAM	0	2	1	0	2.33
Enphase Energy	3	11	9	0	2.26

Enphase Energy has a consensus price target of $44.34, indicating a potential upside of 36.85%. Given Enphase Energy’s higher probable upside, analysts clearly believe Enphase Energy is more favorable than ams-OSRAM.

Volatility & Risk

ams-OSRAM has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.65, meaning that its stock price is 65% more volatile than the S&P 500.

Earnings and Valuation

This table compares ams-OSRAM and Enphase Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ams-OSRAM	$3.76 billion	0.66	-$147.08 million	($1.91)	-6.48
Enphase Energy	$1.47 billion	2.91	$172.13 million	$1.00	32.40

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

Summary

Enphase Energy beats ams-OSRAM on 11 of the 14 factors compared between the two stocks.

About ams-OSRAM

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and Asia/Pacific. The company operates in Semiconductors and Lamps & Systems segments. The Semiconductors segment offers semiconductor-based products and solutions, such as high-performance LEDs, lasers, and optical sensors for automotive, consumer, and industrial and medical technology end markets. The Lamps & Systems segment provides lamps and lighting systems for the automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG is headquartered in Premstätten, Austria.

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.