SEDG vs ENPH vs FSLR

For growth investors, SolarEdge Technologies, Inc.

(SEDG) is the stronger pick with 31. 4% revenue growth year-over-year, versus 10. 7% for Enphase Energy, Inc. (ENPH). First Solar, Inc. (FSLR) offers the better valuation at 15. 3x trailing P/E (12. 2x forward), making it the more compelling value choice. Analysts rate First Solar, Inc. (FSLR) a "Buy" — based on 73 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, First Solar, Inc.

(FSLR) is the cheapest at 15. 3x versus Enphase Energy, Inc. at 27. 8x. On forward P/E, First Solar, Inc. is actually cheaper at 12. 2x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: First Solar, Inc. wins at 0. 40x versus Enphase Energy, Inc. 's 2. 82x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, First Solar, Inc.

(FSLR) delivered a total return of +196. 1%, compared to -81. 0% for SolarEdge Technologies, Inc. (SEDG). Over 10 years, the gap is even starker: ENPH returned +1765% versus SEDG's +82. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), First Solar, Inc.

(FSLR) is the lower-risk stock at 1. 39β versus SolarEdge Technologies, Inc. 's 2. 03β — meaning SEDG is approximately 46% more volatile than FSLR relative to the S&P 500. On balance sheet safety, First Solar, Inc. (FSLR) carries a lower debt/equity ratio of 5% versus 114% for Enphase Energy, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), SolarEdge Technologies, Inc.

(SEDG) is pulling ahead at 31. 4% versus 10. 7% for Enphase Energy, Inc. (ENPH). On earnings-per-share growth, the picture is similar: SolarEdge Technologies, Inc. grew EPS 78. 2% year-over-year, compared to 18. 2% for First Solar, Inc.. Over a 3-year CAGR, FSLR leads at 25. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

First Solar, Inc.

(FSLR) is the more profitable company, earning 29. 3% net margin versus -34. 2% for SolarEdge Technologies, Inc. — meaning it keeps 29. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FSLR leads at 32. 3% versus -24. 1% for SEDG. At the gross margin level — before operating expenses — ENPH leads at 46. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, First Solar, Inc. (FSLR) is the more undervalued stock at a PEG of 0. 40x versus Enphase Energy, Inc. 's 2. 82x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, First Solar, Inc. (FSLR) trades at 12. 2x forward P/E versus 642. 6x for SolarEdge Technologies, Inc. — 630. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ENPH: 21. 5% to $43. 48.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, Enphase Energy, Inc.

(ENPH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+1765% 10Y return). SolarEdge Technologies, Inc. (SEDG) carries a higher beta of 2. 03 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ENPH: +1765%, SEDG: +82. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Energy sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: SEDG is a small-cap high-growth stock; ENPH is a small-cap quality compounder stock; FSLR is a mid-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.