ENPH vs SEDG Stock Comparison: AI Score, Valuation, Performance and Upside
ENPH and SEDG are the two dominant Western solar inverter companies that both experienced significant downturns during the 2023-2024 solar industry correction driven by rising interest rates and installer inventory destocking. Enphase has generally navigated the downturn with stronger financial results than SolarEdge, which has required more significant restructuring.
ENPH vs SEDG compares the two leading residential solar inverter companies both recovering from a severe industry correction, with different technology approaches and financial resilience during the downturn.
ENPH holds the edge across 4 of 5 key metrics in this comparison. SEDG has delivered stronger 1-year price return (+5.54% vs -7.62%), though ENPH has the better forward P/E setup (16.17x vs 32.39x for SEDG). On fundamentals, SEDG is growing revenue faster (19.60%), while ENPH maintains the higher operating margin (17.98%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for ENPH (+25.61%) than for SEDG (+22.41%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want exposure to the residential solar equipment market through the microinverter technology leader
- Believe U.S. and European residential solar installation recovery will drive demand growth
- Value Enphase's expanding battery and energy management ecosystem beyond solar inverters alone
- See potential recovery value in SolarEdge following a more severe business decline than Enphase
- Believe SolarEdge's European market position and cost structure improvements will drive recovery
- Are comfortable with higher near-term execution risk in exchange for potential valuation upside
| Metric | ENPH | SEDG |
|---|---|---|
| AI scorei | 51.7 | 35.3 |
| AI ranki | #441 | #1697 |
| Latest closei | $36.02 | $36.00 |
| 1M returni | -4.15% | +20.72% |
| 6M returni | -19.31% | -21.16% |
| 1Y returni | -7.62% | +5.54% |
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 | $9.3K (-7.0%) started 2025-09-17 | $10.55K (+5.5%) started 2025-09-17 |
| 5Y ago | $2.36K (-76.4%) started 2021-09-20 | $1.28K (-87.2%) started 2021-09-17 |
| 10Y ago | $243.38K (+2333.8%) started 2016-09-19 | $23.47K (+134.7%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | ENPH | SEDG |
|---|---|---|
| Market capi | $4.92B | $1.93B |
| Trailing P/Ei | 36.88 | N/A |
| Forward P/Ei | 16.17 | 32.39 |
| Price/Salesi | 3.80 | 1.17 |
| EV/Revenuei | 3.46 | 1.35 |
| Analyst targeti | $46.79 | $38.45 |
| Target upsidei | +25.61% | +22.41% |
| Metric | ENPH | SEDG |
|---|---|---|
| Revenue growthi | -19.60% | 19.60% |
| Earnings growthi | -3.50% | N/A |
| EPS growthi | -3.50% | N/A |
| FCF margini | +5.90% | +8.54% |
| Operating margini | 17.98% | -6.51% |
| Profit margini | 10.09% | -20.29% |
| ROIC proxyi | 13.00% | -58.42% |
| Return on equityi | 13.00% | -58.42% |
| Dividend yieldi | N/A | N/A |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 1.65 | 1.47 |
| Debt/equityi | 51.90 | 98.85 |
| Current ratioi | 3.45 | 2.03 |
| Quick ratioi | 2.53 | 1.26 |
Over the past year, ENPH and SEDG have moved moderately in the same direction (correlation of 0.68), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | ENPH | SEDG |
|---|---|---|---|
| 1Y | Growthi | -6.97% | +5.54% |
| CAGRi | -6.98% | +5.54% | |
| Volatilityi | 82.56% | 99.16% | |
| Sharpe ratioi | 0.25 | 0.51 | |
| Sortino ratioi | 0.41 | 0.76 | |
| Max drawdowni | 51.51% | 62.02% | |
| Current drawdowni | 50.20% | 54.15% | |
| Avg drawdowni | 24.46% | 24.17% | |
| Ulcer Indexi | 28.71% | 29.73% | |
| Max daily dropi | 18.01% | 30.48% | |
| Max wkly dropi | 26.73% | 31.69% | |
| 5Y | Growthi | -76.37% | -87.21% |
| CAGRi | -25.10% | -33.72% | |
| Volatilityi | 70.94% | 86.04% | |
| Sharpe ratioi | -0.12 | -0.10 | |
| Sortino ratioi | -0.17 | -0.14 | |
| Max drawdowni | 92.23% | 97.16% | |
| Current drawdowni | 89.28% | 90.23% | |
| Avg drawdowni | 59.06% | 62.53% | |
| Ulcer Indexi | 65.50% | 71.02% | |
| Max daily dropi | 25.73% | 33.44% | |
| Max wkly dropi | 33.19% | 35.14% | |
| 10Y | Growthi | +2333.78% | +134.68% |
| CAGRi | +37.63% | +8.91% | |
| Volatilityi | 78.39% | 74.98% | |
| Sharpe ratioi | 0.74 | 0.43 | |
| Sortino ratioi | 1.14 | 0.64 | |
| Max drawdowni | 92.23% | 97.16% | |
| Current drawdowni | 89.28% | 90.23% | |
| Avg drawdowni | 40.35% | 39.93% | |
| Ulcer Indexi | 50.07% | 52.65% | |
| Max daily dropi | 28.14% | 33.44% | |
| Max wkly dropi | 42.51% | 35.14% |
| Category | ENPH | SEDG |
|---|---|---|
| Company | Enphase Energy, Inc. | SolarEdge Technologies, Inc. |
| Sector | Technology | Technology |
| Industry | Solar | Solar |
| Core business | Enphase Energy designs and manufactures microinverter-based solar energy systems for residential and commercial installations, where each solar panel gets its own small microinverter, plus home batteries, EV chargers, and energy management software. | SolarEdge provides DC power optimizers and string inverters for residential and commercial solar installations, as well as grid services and commercial energy storage, with a particularly strong position in European residential solar markets. |
| Investor focus | Investors track Enphase's quarterly shipment volumes and revenue, residential solar installation demand in the U.S. and Europe, battery attachment rates with solar installations, and the recovery from a significant industry correction. | Investors track SolarEdge's revenue recovery from a severe inventory correction, European versus U.S. market performance, and the company's cost structure and profitability timeline. |
- Microinverter technology provides panel-level optimization and monitoring advantages over string inverters
- Strong U.S. residential solar market share with IQ8 microinverters and IQ battery storage products
- Vertically integrated energy management ecosystem spanning solar, storage, and EV charging
- DC power optimizer plus string inverter approach provides a cost-efficient alternative to microinverters for many installations
- Strong European residential solar market presence
- Commercial energy storage and grid services provide diversification beyond residential solar
- Experienced a severe demand correction in 2023-2024 as high interest rates reduced residential solar installation rates
- European market softness added to demand headwinds beyond the U.S. correction
- Competition from SolarEdge and increasingly from Chinese inverter manufacturers entering Western markets
- Experienced a more severe business decline than Enphase during the 2023-2024 solar demand correction, requiring significant restructuring
- Competitive pricing pressure from Chinese inverter manufacturers has been intense in European markets
- Profitability recovery has been challenging amid lower volumes and price pressure
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