Array Technologies, Inc. (ARRY) vs Enphase Energy, Inc. (ENPH)

Array Technologies, Inc. and Enphase Energy, Inc. are both Solar companies. Enphase Energy, Inc. is the larger, with a market value of $4.4B against $613.0M — 7.2× the size. Array Technologies, Inc. has negative trailing earnings, so its P/E is not meaningful; Enphase Energy, Inc. trades at 31.8×. Array Technologies, Inc. grew revenue faster over the last twelve months: 1.18% against −10.4%. Enphase Energy, Inc. has the higher net margin (10.1% vs −12.5%) and the higher return on invested capital (8.45% vs −25.6%). Across the 20 metrics below, Enphase Energy, Inc. leads on 12 and Array Technologies, Inc. on 8.

Valuation

Metric ARRY ENPH Solar median
P/E n/m 31.76 10.93
P/S 0.52 3.22 0.54
P/B n/m 3.62 1.44
Price to free cash flow 4.60 29.01 9.91
EV/EBITDA 9.40 23.16 9.90
EV/Sales 0.83 3.42 0.74
Earnings yield (24.32%) 3.15% 0.00%
Free cash flow yield 21.73% 3.45% 0.00%

Profitability

Metric ARRY ENPH Solar median
Gross margin 24.27% 46.95% 31.92%
Operating margin (5.13%) 8.32% (9.70%)
Net margin (12.48%) 10.09% (8.48%)
Free cash flow margin 11.37% 11.49% (2.95%)
Return on equity 108.38% 13.00% 5.34%
Return on assets (9.62%) 4.40% (5.36%)
Return on invested capital (25.60%) 8.45% (5.27%)

Growth

Metric ARRY ENPH Solar median
Revenue growth (TTM) 1.18% (10.41%) 16.97%
EPS growth (last fiscal year) 62.56% 72.00% —
Revenue growth, 5-year CAGR 8.03% 13.72% 14.00%
Net income growth, 5-year CAGR 0.00% 5.14% 0.00%

Health

Metric ARRY ENPH Solar median
Debt to equity (3.25) 0.48 0.09
Current ratio 2.20 3.45 1.33
Net debt to EBITDA 3.36 (1.29) 0.03

Dividend

Metric ARRY ENPH Solar median
Dividend yield — — —
Payout ratio 0.00 0.00 0.00

Size

Metric ARRY ENPH Solar median
Market cap 612.95m 4.39b 43.46m

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