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ARRY vs. ENPH: Which Stock Should Value Investors Buy Now?
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Investors with an interest in Solar stocks have likely encountered both Array Technologies, Inc. (ARRY - Free Report) and Enphase Energy (ENPH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Array Technologies, Inc. has a Zacks Rank of #2 (Buy), while Enphase Energy has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ARRY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ARRY currently has a forward P/E ratio of 11.64, while ENPH has a forward P/E of 38.46. We also note that ARRY has a PEG ratio of 0.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ENPH currently has a PEG ratio of 2.19.
Another notable valuation metric for ARRY is its P/B ratio of 7.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ENPH has a P/B of 16.79.
Based on these metrics and many more, ARRY holds a Value grade of A, while ENPH has a Value grade of D.
ARRY has seen stronger estimate revision activity and sports more attractive valuation metrics than ENPH, so it seems like value investors will conclude that ARRY is the superior option right now.
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ARRY vs. ENPH: Which Stock Should Value Investors Buy Now?
Investors with an interest in Solar stocks have likely encountered both Array Technologies, Inc. (ARRY - Free Report) and Enphase Energy (ENPH - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Array Technologies, Inc. has a Zacks Rank of #2 (Buy), while Enphase Energy has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ARRY is likely seeing its earnings outlook improve to a greater extent. But this is only part of the picture for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ARRY currently has a forward P/E ratio of 11.64, while ENPH has a forward P/E of 38.46. We also note that ARRY has a PEG ratio of 0.79. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ENPH currently has a PEG ratio of 2.19.
Another notable valuation metric for ARRY is its P/B ratio of 7.31. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, ENPH has a P/B of 16.79.
Based on these metrics and many more, ARRY holds a Value grade of A, while ENPH has a Value grade of D.
ARRY has seen stronger estimate revision activity and sports more attractive valuation metrics than ENPH, so it seems like value investors will conclude that ARRY is the superior option right now.