STEM vs TSLA vs ENPH vs SEDG

For growth investors, SolarEdge Technologies, Inc.

(SEDG) is the stronger pick with 31. 4% revenue growth year-over-year, versus -2. 9% for Tesla, Inc. (TSLA). Enphase Energy, Inc. (ENPH) offers the better valuation at 27. 8x trailing P/E (17. 8x forward), making it the more compelling value choice. Analysts rate Stem, Inc. (STEM) a "Hold" — based on 17 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, Enphase Energy, Inc.

(ENPH) is the cheapest at 27. 8x versus Tesla, Inc. at 369. 0x. On forward P/E, Enphase Energy, Inc. is actually cheaper at 17. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Enphase Energy, Inc. wins at 2. 82x versus Tesla, Inc. 's 5. 32x.

Over the past 5 years, Tesla, Inc.

(TSLA) delivered a total return of +80. 2%, compared to -97. 4% for Stem, Inc. (STEM). Over 10 years, the gap is even starker: TSLA returned +26. 8% versus STEM's -94. 5%. 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), Enphase Energy, Inc.

(ENPH) is the lower-risk stock at 1. 70β versus Stem, Inc. 's 3. 66β — meaning STEM is approximately 116% more volatile than ENPH relative to the S&P 500. On balance sheet safety, Tesla, Inc. (TSLA) carries a lower debt/equity ratio of 10% 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 -2. 9% for Tesla, Inc. (TSLA). On earnings-per-share growth, the picture is similar: Stem, Inc. grew EPS 91. 3% year-over-year, compared to -47. 0% for Tesla, Inc.. Over a 3-year CAGR, TSLA leads at 5. 2% 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.

Stem, Inc.

(STEM) is the more profitable company, earning 88. 2% net margin versus -34. 2% for SolarEdge Technologies, Inc. — meaning it keeps 88. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ENPH leads at 11. 2% versus -38. 7% for STEM. 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, Enphase Energy, Inc. (ENPH) is the more undervalued stock at a PEG of 2. 82x versus Tesla, Inc. 's 5. 32x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Enphase Energy, Inc. (ENPH) trades at 17. 8x forward P/E versus 642. 6x for SolarEdge Technologies, Inc. — 624. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for STEM: 93. 4% to $20. 67.

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). Stem, Inc. (STEM) carries a higher beta of 3. 66 — 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%, STEM: -94. 5%), 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.

These companies operate in different sectors (STEM (Technology) and TSLA (Consumer Cyclical) and ENPH (Energy) and SEDG (Energy)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: STEM is a small-cap quality compounder stock; TSLA is a mega-cap quality compounder stock; ENPH is a small-cap quality compounder stock; SEDG is a small-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.