Contrasting Synaptics (NASDAQ:SYNA) & Enphase Energy (NASDAQ:ENPH)

Enphase Energy (NASDAQ:ENPH) and Synaptics (NASDAQ:SYNA) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Risk & Volatility

Enphase Energy has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, Synaptics has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Insider & Institutional Ownership

72.1% of Enphase Energy shares are held by institutional investors. Comparatively, 99.4% of Synaptics shares are held by institutional investors. 3.4% of Enphase Energy shares are held by company insiders. Comparatively, 1.3% of Synaptics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Enphase Energy and Synaptics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	7.72%	15.62%	4.32%
Synaptics	16.73%	1.61%	0.84%

Valuation & Earnings

This table compares Enphase Energy and Synaptics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.33 billion	6.46	$102.66 million	$0.74	87.61
Synaptics	$1.01 billion	2.65	$125.60 million	$4.23	16.17

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

Analyst Ratings

This is a summary of current recommendations and price targets for Enphase Energy and Synaptics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	3	15	14	0	2.34
Synaptics	0	2	5	1	2.88

Enphase Energy presently has a consensus price target of $90.42, suggesting a potential upside of 39.48%. Synaptics has a consensus price target of $95.25, suggesting a potential upside of 39.27%. Given Enphase Energy’s higher probable upside, research analysts clearly believe Enphase Energy is more favorable than Synaptics.

Summary

Enphase Energy beats Synaptics on 9 of the 15 factors compared between the two stocks.

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.

About Synaptics

Synaptics Incorporated develops, markets, and sells semiconductor products worldwide. The company offers AudioSmart for voice and audio processing; ConnectSmart for high-speed video/audio/data connectivity; DisplayLink for transmitting compressed video frames across low bandwidth connections; VideoSmart that enables set-top boxes, over-the-top, streaming devices, soundbars, surveillance cameras, and smart displays; and ImagingSmart solutions. It also provides Natural ID, a fingerprint ID product that is used in notebook personal computers (PCs), PC peripherals, automobiles, and other applications; TouchPad, a touch-sensitive pad that senses the position and movement of one or more fingers on its surface; SecurePad that integrates fingerprint sensor directly into the TouchPad area; ClickPad that offers a clickable mechanical design; and ForcePad. In addition, the company offers ClearPad, which enables users to interact directly with the display on mobile smartphones, tablets, and automobiles; ClearView products that provide advanced image processing and low power technology for displays on smartphones and tablets; and TouchView products, a touch controller and display driver integration product. Further, it provides TouchPad with a pointing stick in a single notebook computer enabling users to select their interface of choice; TouchStyk, a self-contained pointing stick module; ultra-low power edge artificial intelligence platform for battery powered wireless devices; wireless connectivity solutions comprising Wi-Fi, Bluetooth, global positioning system, global navigation satellite system, and ULE; and voice over IP and digital enhanced cordless telecommunications solutions. The company sells its products through direct sales, outside sales representatives, distributors, and resellers to mobile and PC OEMs; IoT OEMs; and automotive and consumer electronics manufacturers. The company was incorporated in 1986 and is headquartered in San Jose, California.