Enphase Energy (NASDAQ:ENPH) and CSLM Acquisition (NASDAQ:SPWR) Head-To-Head Analysis

Enphase Energy (NASDAQ:ENPH) and CSLM Acquisition (NASDAQ:SPWR) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

Enphase Energy has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, CSLM Acquisition has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.

Earnings and Valuation

This table compares Enphase Energy and CSLM Acquisition”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enphase Energy	$1.47 billion	2.91	$172.13 million	$1.29	25.19
CSLM Acquisition	$300.00 million	0.44	-$56.45 million	($0.47)	-2.52

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

Profitability

This table compares Enphase Energy and CSLM Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enphase Energy	11.69%	20.31%	5.84%
CSLM Acquisition	5.11%	-16.64%	10.18%

Insider and Institutional Ownership

72.1% of Enphase Energy shares are owned by institutional investors. Comparatively, 47.4% of CSLM Acquisition shares are owned by institutional investors. 2.9% of Enphase Energy shares are owned by company insiders. Comparatively, 42.6% of CSLM Acquisition shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Enphase Energy and CSLM Acquisition, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enphase Energy	9	12	10	0	2.03
CSLM Acquisition	1	0	1	0	2.00

Enphase Energy currently has a consensus target price of $42.70, indicating a potential upside of 31.44%. CSLM Acquisition has a consensus target price of $5.40, indicating a potential upside of 355.70%. Given CSLM Acquisition’s higher probable upside, analysts clearly believe CSLM Acquisition is more favorable than Enphase Energy.

Summary

Enphase Energy beats CSLM Acquisition on 11 of the 14 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 CSLM Acquisition

Complete Solaria, Inc. engages in the provision of solar services. It offers sales enablement, project management, partner coordination, and customer communication. The company is headquartered in San Ramon, CA and does business as SunPower Corporation.