Enphase Energy, Inc. (ENPH) vs Sunrun Inc. (RUN)

Enphase Energy, Inc. and Sunrun Inc. are both Solar companies. Enphase Energy, Inc. is the larger, with a market value of $4.4B against $1.9B — 2.3× the size. Sunrun Inc. trades at the lower P/E: 4.7× against 31.8×. Sunrun Inc. grew revenue faster over the last twelve months: 63.2% against −10.4%. Sunrun Inc. has the higher net margin (11.6% vs 10.1%) and the lower return on invested capital (0.31% vs 8.45%). Across the 21 metrics below, Enphase Energy, Inc. leads on 12 and Sunrun Inc. on 9.

Valuation

Metric ENPH RUN Solar median
P/E 31.76 4.74 10.93
P/S 3.22 0.56 0.54
P/B 3.62 0.44 1.44
Price to free cash flow 29.01 n/m 9.91
EV/EBITDA 23.16 19.02 9.90
EV/Sales 3.42 4.60 0.74
Earnings yield 3.15% 21.09% 0.00%
Free cash flow yield 3.45% (114.08%) 0.00%

Profitability

Metric ENPH RUN Solar median
Gross margin 46.95% 35.29% 31.92%
Operating margin 8.32% 2.66% (9.70%)
Net margin 10.09% 11.59% (8.48%)
Free cash flow margin 11.49% (63.62%) (2.95%)
Return on equity 13.00% 9.92% 5.34%
Return on assets 4.40% 1.81% (5.36%)
Return on invested capital 8.45% 0.31% (5.27%)

Growth

Metric ENPH RUN Solar median
Revenue growth (TTM) (10.41%) 63.23% 16.97%
EPS growth (last fiscal year) 72.00% 113.35% —
Revenue growth, 5-year CAGR 13.72% 26.24% 14.00%
Net income growth, 5-year CAGR 5.14% 0.00% 0.00%

Health

Metric ENPH RUN Solar median
Debt to equity 0.48 3.46 0.09
Current ratio 3.45 1.42 1.33
Net debt to EBITDA (1.29) 22.50 0.03

Dividend

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

Size

Metric ENPH RUN Solar median
Market cap 4.39b 1.90b 43.46m

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