Contrasting Infineon Technologies (OTCMKTS:IFNNY) & Enphase Energy (OTCMKTS:ENPH)

Infineon Technologies (OTCMKTS:IFNNY) and Enphase Energy (NASDAQ:ENPH) are both computer and technology companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Infineon Technologies 14.55% 18.42% 11.00%
Enphase Energy -1.08% N/A -1.24%

Insider and Institutional Ownership

0.3% of Infineon Technologies shares are owned by institutional investors. Comparatively, 48.4% of Enphase Energy shares are owned by institutional investors. 12.5% of Enphase Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Infineon Technologies and Enphase Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Infineon Technologies $8.83 billion 2.15 $1.28 billion $1.14 14.65
Enphase Energy $316.16 million 6.15 -$11.63 million ($0.12) -147.00

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Infineon Technologies and Enphase Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Infineon Technologies 0 2 2 0 2.50
Enphase Energy 1 3 3 0 2.29

Enphase Energy has a consensus target price of $14.42, indicating a potential downside of 18.27%. Given Enphase Energy’s higher probable upside, analysts plainly believe Enphase Energy is more favorable than Infineon Technologies.

Dividends

Infineon Technologies pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. Enphase Energy does not pay a dividend. Infineon Technologies pays out 18.4% of its earnings in the form of a dividend.

Risk and Volatility

Infineon Technologies has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Summary

Infineon Technologies beats Enphase Energy on 9 of the 15 factors compared between the two stocks.

About Infineon Technologies

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and system solutions worldwide. The company operates in four segments: Automotive, Industrial Power Control, Power Management & Multimarket, and Digital Security Solutions. The Automotive segment offers automotive microcontrollers for powertrain, safety, and driver assistance systems; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; and voltage regulators for use in assistance and safety systems, comfort electronics, and powertrain and security products. The Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, IGBT modules and stacks, and silicon carbide MOSEFTs and modules for electric vehicle charging stations, energy distribution, home appliances, industrial drives, industrial robots, industrial vehicles, renewable energy generation, and traction. The Power Management & Multimarket segment offers control ICs, customized chips, discrete low-voltage and high-voltage power MOSFETs and driver ICs, GPS low-noise amplifiers, MEMS and ASICs for pressure sensors and silicon microphones, radar sensor ICs, RF antenna switches and power transistors, silicon carbide diodes, and transient voltage suppressor diodes for use in cellular infrastructure, electric vehicle charging stations, DC motors, various components, Internet of Things, LED and conventional lighting systems, mobile devices, and power management. The Digital Security Solutions segment provides contact-based, contactless, dual interface, and embedded security controllers for authentication, automotive, government identification document, healthcare card, Internet of things, mobile communication, payment system, mobile payment, ticketing, access control, and trusted computing applications. Infineon Technologies AG is headquartered in Munich, Germany.

About Enphase Energy

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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