Better Buy: SolarEdge Technologies vs. Enphase Energy

High expectations for solar power demand has sent solar stocks soaring lately. Stocks of top solar component suppliers SolarEdge Technologies (NASDAQ: SEDG) and Enphase Energy (NASDAQ: ENPH) have also risen significantly in the last couple of years. Both companies supply products that improve power generated from solar modules. In the last 12 months, though, Enphase Energy stock rose around 370%, outperforming SolarEdge's nearly 200% rise. Let's see what's driving Enphase Energy stock's recent outperformance and if it's a better buy right now.

Five years back, both SolarEdge and Enphase Energy were earning roughly the same revenue. SolarEdge then expanded rapidly, far exceeding Enphase Energy in terms of revenue. In comparison, Enphase Energy found itself struggling to grow its top and bottom lines. In fact, the company faced a cash crunch in 2016. But Enphase Energy then turned itself around and came back in a big way.