Critical Survey: Viavi Solutions (VIAV) versus Enphase Energy (ENPH)

Viavi Solutions (NASDAQ: VIAV) and Enphase Energy (NASDAQ:ENPH) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.

Volatility and Risk

Viavi Solutions has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Enphase Energy has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Viavi Solutions -0.43% 10.74% 4.10%
Enphase Energy -8.96% N/A -12.84%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viavi Solutions $811.40 million 2.76 $166.90 million $0.25 39.60
Enphase Energy $286.17 million 1.90 -$45.19 million ($0.54) -10.39

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

Insider & Institutional Ownership

90.8% of Viavi Solutions shares are owned by institutional investors. Comparatively, 30.1% of Enphase Energy shares are owned by institutional investors. 0.6% of Viavi Solutions shares are owned by insiders. Comparatively, 13.5% of Enphase Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Viavi Solutions and Enphase Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viavi Solutions 1 2 7 0 2.60
Enphase Energy 0 2 6 0 2.75

Viavi Solutions currently has a consensus target price of $11.18, indicating a potential upside of 12.90%. Enphase Energy has a consensus target price of $5.29, indicating a potential downside of 5.78%. Given Viavi Solutions’ higher possible upside, equities research analysts plainly believe Viavi Solutions is more favorable than Enphase Energy.

Summary

Viavi Solutions beats Enphase Energy on 12 of the 14 factors compared between the two stocks.

Viavi Solutions Company Profile

Viavi Solutions Inc. provides network test, monitoring, and assurance solutions to communications service providers, and enterprises and their ecosystems worldwide. The company operates through Network Enablement, Service Enablement, and Optical Security and Performance Products segments. The Network Enablement segment offers testing solutions that access the network to perform build-out and maintenance tasks. This segment provides solutions that include instruments, software and services to design, build, activate, certify, troubleshoot, and optimize networks. It also offers support and professional services, such as repair, calibration, software support, and technical assistance for the products; and system integration projects comprising project management, installation, and implementation, as well as product and technology training, and consulting services. The Service Enablement segment provides embedded systems and enterprise performance management solutions for communication service providers and enterprises with visibility into network, service, and application data. Its solutions comprise instruments, microprobes, and software, which monitor, collect, and analyze network data to reveal the actual customer experience and to identify opportunities for new revenue streams and network optimization. The Optical Security and Performance Products segment offers optical products for anti-counterfeiting, government, industrial, automotive, and consumer electronic markets, including 3D sensing applications. The company was formerly known as JDS Uniphase Corporation and changed its name to Viavi Solutions Inc. in August 2015. Viavi Solutions Inc. was founded in 1979 and is headquartered in Milpitas, California.

Enphase Energy Company Profile

Enphase Energy, Inc., together with its subsidiaries, designs, develops, and sells microinverter systems for residential and commercial markets in the United States and internationally. The company's semiconductor-based microinverter system converts direct current electricity to alternating current (AC) electricity at the individual solar module level. It also offers energy storage systems, including its AC battery; and energy monitoring and control services. The company sells its microinverter systems primarily to distributors, as well as directly to large installers through original equipment manufacturers and strategic partners. Enphase Energy, Inc. has a strategic partnership with Panasonic Corporation of North America for the development of AC modules. The company was founded in 2006 and is headquartered in Petaluma, California.

Receive News & Ratings for Viavi Solutions Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Viavi Solutions and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply