WallStSmart

Enphase Energy Inc (ENPH)vsMicrosoft Corporation (MSFT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Microsoft Corporation generates 22637% more annual revenue ($318.27B vs $1.40B). MSFT leads profitability with a 39.3% profit margin vs 9.6%. MSFT appears more attractively valued with a PEG of 1.42. MSFT earns a higher WallStSmart Score of 72/100 (B).

ENPH

Hold

37

out of 100

Grade: F

Growth: 2.0Profit: 4.5Value: 5.3Quality: 6.5
Piotroski: 5/9Altman Z: 1.26

MSFT

Strong Buy

72

out of 100

Grade: B

Growth: 8.0Profit: 9.5Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ENPHUndervalued (+20.0%)

Margin of Safety

+20.0%

Fair Value

$60.32

Current Price

$56.07

$4.25 discount

UndervaluedFair: $60.32Overvalued

Intrinsic value data unavailable for MSFT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ENPH0 strengths · Avg: 0/10

No standout strengths identified

MSFT6 strengths · Avg: 9.8/10
Market CapQuality
$3.28T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
30.2%10/10

Every $100 of equity generates 30 in profit

Profit MarginProfitability
39.3%10/10

Keeps 39 of every $100 in revenue as profit

Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Free Cash FlowQuality
$15.80B10/10

Generating 15.8B in free cash flow

Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

Areas to Watch

ENPH4 concerns · Avg: 2.0/10
P/E RatioValuation
54.0x2/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
-20.6%2/10

Revenue declined 20.6%

EPS GrowthGrowth
-36.4%2/10

Earnings declined 36.4%

Altman Z-ScoreHealth
1.262/10

Distress zone — elevated risk

MSFT1 concerns · Avg: 4.0/10
P/E RatioValuation
26.3x4/10

Moderate valuation

Comparative Analysis Report

WallStSmart Research

Bull Case : ENPH

PEG of 1.44 suggests the stock is reasonably priced for its growth.

Bull Case : MSFT

The strongest argument for MSFT centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 39.3% and operating margin at 46.3%. Revenue growth of 18.3% demonstrates continued momentum.

Bear Case : ENPH

The primary concerns for ENPH are P/E Ratio, Revenue Growth, EPS Growth. A P/E of 54.0x leaves little room for execution misses.

Bear Case : MSFT

The primary concerns for MSFT are P/E Ratio.

Key Dynamics to Monitor

ENPH profiles as a value stock while MSFT is a growth play — different risk/reward profiles.

ENPH carries more volatility with a beta of 1.57 — expect wider price swings.

MSFT is growing revenue faster at 18.3% — sustainability is the question.

MSFT generates stronger free cash flow (15.8B), providing more financial flexibility.

Bottom Line

MSFT scores higher overall (72/100 vs 37/100), backed by strong 39.3% margins and 18.3% revenue growth. ENPH offers better value entry with a 20.0% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Enphase Energy Inc

TECHNOLOGY · SOLAR · USA

Enphase Energy is an American energy technology company headquartered in Fremont, California. Enphase designs and manufactures software-driven home energy solutions that span solar generation, home energy storage and web-based monitoring and control.

Microsoft Corporation

TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA

Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.

Visit Website →

Want to dig deeper into these stocks?