Head to Head Analysis: Photronics (PLAB) versus Enphase Energy (ENPH)

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Photronics (NASDAQ:PLAB) and Enphase Energy (NASDAQ:ENPH) are both small-cap 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, valuation, dividends, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for Photronics and Enphase Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Photronics 0 1 1 0 2.50
Enphase Energy 0 0 6 0 3.00

Photronics currently has a consensus target price of $11.50, suggesting a potential upside of 21.05%. Enphase Energy has a consensus target price of $7.17, suggesting a potential upside of 72.69%. Given Enphase Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Enphase Energy is more favorable than Photronics.

Profitability

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

Net Margins Return on Equity Return on Assets
Photronics 6.83% 3.65% 3.07%
Enphase Energy -6.17% N/A -9.61%

Volatility and Risk

Photronics has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Earnings & Valuation

This table compares Photronics and Enphase Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Photronics $450.68 million 1.47 $13.13 million $0.19 50.00
Enphase Energy $286.17 million 1.40 -$45.19 million ($0.54) -7.69

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

Institutional & Insider Ownership

92.7% of Photronics shares are owned by institutional investors. Comparatively, 39.3% of Enphase Energy shares are owned by institutional investors. 3.7% of Photronics shares are owned by company insiders. Comparatively, 13.5% of Enphase Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Photronics beats Enphase Energy on 10 of the 14 factors compared between the two stocks.

About Photronics

Photronics, Inc., together with its subsidiaries, manufactures and sells photomasks in Taiwan, Korea, the United States, Europe, and internationally. The company offers photomasks, which are high precision photographic quartz plates containing microscopic images of electronic circuits for use in the manufacture of semiconductors and flat panel displays (FPDs), as well as that are used as masters to transfer circuit patterns onto semiconductor wafers and flat panel display substrates during the fabrication of integrated circuits, FPDs, and other types of electrical and optical components. It sells its products to semiconductor or FPD designers, manufacturers, and foundries, as well as to other high performance electronics manufacturers through its sales personnel and customer service representatives. The company was formerly known as Photronic Labs, Inc. and changed its name to Photronics, Inc. in 1990. Photronics, Inc. was founded in 1969 and is based in Brookfield, Connecticut.

About Enphase Energy

Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells microinverter systems for residential and commercial markets in the United States and internationally. The company's semiconductor-based microinverter system converts direct current (DC) electricity to alternating current (AC) electricity at the individual solar module level. It also offers energy storage systems, including its AC battery; and energy monitoring and control services. The company sells its microinverter systems primarily to distributors, as well as directly to large installers through original equipment manufacturers and strategic partners. Enphase Energy, Inc. has a strategic partnership with Panasonic Corporation of North America for the development of AC modules. The company was founded in 2006 and is headquartered in Petaluma, California.

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