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ENPH
Enphase Energy, Inc. · Technology
$52.28
+11.80% this month
VERSUS
⟷
COMPARE
SEDG
SolarEdge Technologies, Inc. · Technology
$58.05
+6.46% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
ENPH
4
SEDG
1
Comparison scoreboard
ENPH LEADS 4/5AI Score
ENPH ✓56.5
SEDG 40.5
1Y Return
ENPH +49.71%
SEDG ✓+241.87%
Fwd P/E
ENPH ✓22.56
SEDG 38.82
Target Up.
ENPH ✓-14.32%
SEDG -28.65%
Op. Margin
ENPH ✓-9.13%
SEDG -15.28%
Metrics last refreshed: 6/20/2026
Quick take
ENPH vs SEDG Stock Comparison: AI Score, Valuation, Performance and Upside
Enphase and SolarEdge are the two primary US-listed residential solar inverter companies, but they are in dramatically different financial positions. Enphase is the healthier company managing inventory recovery with strong US market position. SolarEdge experienced severe financial distress from European demand collapse and inventory correction — raising going concern questions. The two companies are not equivalent investment propositions due to vastly different financial health.
ENPH vs SEDG is the healthy US microinverter market leader with ecosystem stickiness managing inventory recovery and awaiting residential solar demand normalization (Enphase) versus the financially distressed European solar inverter leader attempting to stabilize after catastrophic demand collapse and capital raises (SolarEdge) — residential solar quality recovery vs high-risk financial turnaround speculation.
Live analysis · updated 6/20/2026
ENPH holds the edge across 4 of 5 key metrics in this comparison. SEDG has delivered stronger 1-year price return (+241.87% vs +49.71%), though ENPH trades at the lower forward P/E (22.56x vs 38.82x). On fundamentals, SEDG is growing revenue faster (41.50%), while ENPH maintains the higher operating margin (-9.13%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for ENPH (-14.32%) than for SEDG (-28.65%).
Normalized 1Y performance
ENPH
SEDG
Recent returns
ENPH
SEDG
Analyst price targets & sentiment
ENPH · 33 analysts
STRONG BUYHOLDSTRONG SELL
Hold (2.7/5.0)
Price target range
analyst low$33.00
analyst high$95.00
analyst mean$46.77
current price$52.28
-14.3% upside to analyst mean
SEDG · 26 analysts
STRONG BUYHOLDSTRONG SELL
Hold (3.3/5.0)
Price target range
analyst low$5.00
analyst mean$43.38
current price$58.05
-28.6% upside to analyst mean
Who should consider this stock?
ENPH may suit investors who:
- →prefer the financially healthy microinverter market leader positioned to recover as residential solar demand normalizes with interest rate relief
- →value Enphase's ecosystem of solar + IQ battery + EV charging creating recurring revenue and switching costs beyond hardware commodity sales
- →want residential solar hardware exposure to the demand recovery cycle with a company that has the balance sheet to weather the extended inventory correction
- →are comfortable with interest rate sensitivity of residential solar demand, inventory correction duration uncertainty, and SolarEdge/Chinese inverter pricing competition
SEDG may suit very risk-tolerant investors who:
- →prefer high-risk/high-reward financial turnaround speculation — SolarEdge at heavily distressed valuations could recover if European solar demand normalizes and losses stabilize
- →understand SolarEdge's going concern risk and are willing to accept potential equity dilution or restructuring as recovery scenarios
- →want speculative clean energy exposure at distressed valuation if SolarEdge successfully recapitalizes and European demand recovers
- →are comfortable with high probability of continued losses, equity dilution risk, and the possibility of complete value impairment if the turnaround fails
Performance & AI score
| Metric | ENPH | SEDG |
|---|---|---|
| AI score | 56.5 | 40.5 |
| AI rank | #232 | #1038 |
| Latest close | $52.28 | $58.05 |
| 1M return | +11.80% | +6.46% |
| 6M return | +65.39% | +100.73% |
| 1Y return | +49.71% | +241.87% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ENPH | SEDG |
|---|---|---|
| 1Y ago | $14.37K (+43.7%) started 2025-06-18 | $34.19K (+241.9%) started 2025-06-18 |
| 5Y ago | $3.21K (-67.9%) started 2021-06-21 | $2.2K (-78.0%) started 2021-06-18 |
| 10Y ago | $244.3K (+2343.0%) started 2016-06-20 | $28.02K (+180.2%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | ENPH | SEDG |
|---|---|---|
| Market cap | $7.19B | $3.7B |
| Trailing P/E | 54.05 | N/A |
| Forward P/E | 22.56 | 38.82 |
| Price/Sales | 3.80 | 1.17 |
| EV/Revenue | 4.91 | 2.79 |
| Analyst target | $46.77 | $43.38 |
| Target upside | -14.32% | -28.65% |
Growth, profitability & risk
| Metric | ENPH | SEDG |
|---|---|---|
| Revenue growth | -20.60% | 41.50% |
| Earnings growth | -36.40% | N/A |
| EPS growth | -36.40% | N/A |
| FCF margin | +6.54% | +21.78% |
| Operating margin | -9.13% | -15.28% |
| Profit margin | 9.64% | -28.56% |
| ROIC proxy | 14.11% | -72.50% |
| Return on equity | 14.11% | -72.50% |
| Dividend yield | N/A | N/A |
| Beta | 1.57 | 1.42 |
| Debt/equity | 55.53 | 98.45 |
| Current ratio | 3.80 | 2.02 |
| Quick ratio | 2.71 | 1.26 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
ENPH max drawdown39.64%
SEDG max drawdown37.26%
ENPH max wkly drop26.73%
SEDG max wkly drop26.38%
5Y risk snapshot
ENPH max drawdown92.23%
SEDG max drawdown97.16%
ENPH max wkly drop33.19%
SEDG max wkly drop35.14%
10Y risk snapshot
ENPH max drawdown92.23%
SEDG max drawdown97.16%
ENPH max wkly drop42.51%
SEDG max wkly drop35.14%
Performance metrics by period
| Period | Metric | ENPH | SEDG |
|---|---|---|---|
| 1Y | Growth | +43.71% | +241.87% |
| CAGR | +43.78% | +242.16% | |
| Sharpe ratio | 0.78 | 1.69 | |
| Max drawdown | 39.64% | 37.26% | |
| Max daily drop | 18.01% | 14.33% | |
| Max wkly drop | 26.73% | 26.38% | |
| 5Y | Growth | -67.94% | -78.03% |
| CAGR | -20.38% | -26.15% | |
| Sharpe ratio | -0.04 | 0.01 | |
| Max drawdown | 92.23% | 97.16% | |
| Max daily drop | 25.73% | 33.44% | |
| Max wkly drop | 33.19% | 35.14% | |
| 10Y | Growth | +2342.99% | +180.16% |
| CAGR | +37.68% | +10.86% | |
| Sharpe ratio | 0.74 | 0.45 | |
| Max drawdown | 92.23% | 97.16% | |
| Max daily drop | 28.14% | 33.44% | |
| Max wkly drop | 42.51% | 35.14% |
Business comparison
| Category | ENPH | SEDG |
|---|---|---|
| Company | Enphase Energy, Inc. | SolarEdge Technologies, Inc. |
| Sector | Technology | Technology |
| Industry | Solar | Solar |
| Core business | Enphase Energy is the leading US microinverter company for residential solar installations. Microinverters attach to each individual solar panel, converting DC to AC at the panel level — unlike string inverters that handle multiple panels together. Enphase's IQ8 microinverters, IQ batteries (energy storage), and EV chargers create a whole-home energy system. Enphase's ecosystem approach — solar + storage + EV charging managed by the Enphase Cloud — creates recurring software revenue and customer lock-in beyond hardware sales. | SolarEdge provides solar inverters and power optimizers primarily for residential and commercial solar installations. SolarEdge's power optimizer technology attaches to each panel (like Enphase) but feeds into a string inverter — providing panel-level monitoring and optimization at lower hardware cost than full microinverters. SolarEdge dominated European residential solar. SolarEdge also has a battery storage segment and a commercial inverter business. SolarEdge experienced a dramatic inventory correction and financial deterioration in 2023-2024, raising going concern questions and requiring emergency capital raises. |
| Investor focus | Investors track US and European residential solar microinverter shipments, IQ battery storage attachment rates with solar, and the demand recovery timeline after the 2023 inventory correction. | Investors track SolarEdge's financial stabilization, European residential solar recovery, battery storage adoption, and any recapitalization or strategic alternatives. |
ENPH strengths
- →Panel-level optimization: microinverters maximize individual panel output regardless of shading or panel variation — superior energy harvest vs string inverters in complex roof configurations
- →Enphase ecosystem stickiness: IQ batteries and EV chargers integrated with Enphase Cloud create recurring revenue and switching costs beyond initial microinverter sale
- →US manufacturing optionality: Enphase's US microinverter production receives IRA manufacturing tax credits, potentially improving cost competitiveness vs imported inverters
SEDG strengths
- →European residential solar market leadership: SolarEdge was the dominant inverter/optimizer provider across Germany, Netherlands, and other key European markets
- →Power optimizer technology provides panel-level monitoring at lower system cost than full microinverters — better economics for installers wanting optimization without full microinverter pricing
- →Commercial solar exposure provides a larger system size market segment beyond residential rooftop
Risks to watch — ENPH
- →Residential solar demand is highly interest-rate sensitive: rising rates increase solar loan financing costs, making residential solar less economical for consumers
- →Enphase experienced severe inventory destocking in 2023-2024: installer channel over-ordered during supply chain disruptions and then worked down inventory, dramatically reducing new Enphase orders
- →SolarEdge and competing inverter brands compete in both US and European markets on price — microinverter premium pricing faces pressure
Risks to watch — SEDG
- →SolarEdge's financial distress is severe — multiple quarters of large losses, going concern audit opinions, and emergency capital raises suggest significant turnaround execution risk
- →European residential solar demand collapse: Germany and other European markets experienced dramatic residential solar demand contraction in 2023-2024 from interest rate increases and policy changes
- →Competition: Enphase, Chinese inverter manufacturers, and Sungrow all compete aggressively in SolarEdge's markets with competitive pricing pressure
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