Enphase Energy (NASDAQ:ENPH) vs. Silicon Motion Technology (NASDAQ:SIMO) Head-To-Head Survey

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

Earnings and Valuation

This table compares Silicon Motion Technology and Enphase Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silicon Motion Technology	$780.73 million	2.50	$90.72 million	$2.79	20.58
Enphase Energy	$1.42 billion	4.21	$102.66 million	$1.08	42.25

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

Institutional and Insider Ownership

78.0% of Silicon Motion Technology shares are owned by institutional investors. Comparatively, 72.1% of Enphase Energy shares are owned by institutional investors. 5.3% of Silicon Motion Technology shares are owned by company insiders. Comparatively, 3.1% of Enphase Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Silicon Motion Technology	11.29%	11.63%	8.77%
Enphase Energy	7.72%	15.62%	4.32%

Analyst Ratings

This is a breakdown of current ratings and target prices for Silicon Motion Technology and Enphase Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silicon Motion Technology	0	1	7	0	2.88
Enphase Energy	10	11	12	0	2.06

Silicon Motion Technology presently has a consensus price target of $75.88, indicating a potential upside of 32.14%. Enphase Energy has a consensus price target of $68.87, indicating a potential upside of 50.92%. Given Enphase Energy’s higher possible upside, analysts plainly believe Enphase Energy is more favorable than Silicon Motion Technology.

Risk & Volatility

Silicon Motion Technology has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Summary

Enphase Energy beats Silicon Motion Technology on 8 of the 14 factors compared between the two stocks.

About Silicon Motion Technology

Silicon Motion Technology Corporation, together with its subsidiaries, designs, develops, and markets NAND flash controllers for solid-state storage devices. The company offers controllers for computing-grade solid state drives (SSDs), which are used in PCs and other client devices; enterprise-grade SSDs used in data centers; eMMC and UFS mobile embedded storage for use in smartphones and IoT devices; flash memory cards and flash drives for use in expandable storage; and specialized SSDs that are used in industrial, commercial, and automotive applications. It markets its controllers under the SMI brand; enterprise-grade SSDs under the Shannon Systems brand; and single-chip industrial-grade SSDs under the FerriSSD, Ferri-eMMC, and Ferri-UFS brands. The company markets and sells its products through direct sales personnel and independent electronics distributors to NAND flash makers, module makers, hyperscalers, and OEMs. It operates in Taiwan, the United States, Korea, China, Malaysia, Singapore, and internationally. The company was founded in 1995 and is based in Hong Kong, Hong Kong.

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.