Archrock vs Enphase Energy

Archrock Inc. and Enphase Energy, Inc. are compared on this page to provide a balanced view. The comparison covers business models, financial performance, and market context to help readers understand how each company operates within its sector. The material is neutral and accessible for learning purposes. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

AROC

Metric

ENPH

$4.72B

Market Cap

$4.52B

12.74%

Potential Profit

22.37%

Buy

Analyst Rating

Hold

Investment Analysis

Archrock

AROC

Pros

Significant revenue growth with Q3 2025 revenue up to $382.4 million from $292.2 million in Q3 2024.
Strong profitability improvement, with net income in Q3 2025 at $71.2 million compared to $37.5 million in Q3 2024.
Adjusted EBITDA rose substantially to $220.9 million in Q3 2025, reflecting operational efficiency gains.

Considerations

High debt-to-equity ratio of 180%, indicating significant leverage risk.
Forward PE ratio around 15.36 suggests moderate valuation, but lacks clear margin of safety.
Stock price trend shows mixed signals with some bearish mid-term technical indicators.

Enphase Energy

ENPH

Pros

High return on equity with a current ROE of 20.22%, indicating efficient use of equity capital.
Strong historical ROE averages suggest consistent profitability growth over recent years.
Exposure to the renewable energy sector with growth potential driven by global solar adoption.

Considerations

ROE of 20.22% is high but below some industry peers, suggesting competitive pressure on returns.
High growth valuations can imply sensitivity to market corrections and execution risks.
Dependence on technology innovation and regulatory support may introduce execution and regulatory risks.

About The Companies

Archrock (AROC)

Archrock Inc. is an American energy infrastructure company that specialises in midstream natural gas compression. Its services are crucial for transporting natural gas from production areas to consumers through pipelines across the United States. The company operates through two main business segments. The 'Contract Operations' segment involves leasing its own fleet of compression equipment and providing the personnel to run it. The 'Aftermarket Services' division offers maintenance, repair, overhaul, and parts for customers who own their own compression equipment. By providing these essential services, Archrock plays a significant role in the US energy value chain. As with any company in the energy sector, its performance can be influenced by factors like commodity prices and regulatory changes. Potential investors should consider these aspects as part of their research, remembering that all investments carry risk and past performance is not a guide to the future.

Enphase Energy (ENPH)

Enphase Energy (ENPH) designs and supplies microinverter systems, home batteries and energy-management software for residential and small commercial solar installations. Its microinverters convert each panel’s DC output into grid‑ready AC, offering modularity, panel‑level monitoring and safety features that appeal to installers and homeowners. Revenue derives from hardware sales, battery systems and recurring software and monitoring subscriptions. With a market capitalisation of about $4.85 billion, Enphase operates in a competitive, fast‑evolving market alongside string‑inverter manufacturers and vertically integrated solar providers. Key growth drivers include rooftop solar uptake, battery adoption and software monetisation; key risks include supply‑chain disruption, pricing pressure, regulatory change and demand cyclicality. This is general educational information and not personalised advice. Investments can fall as well as rise; consider your objectives and risk tolerance and consult an independent financial adviser if unsure.

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Archrock vs Enphase Energy

Comparison Snapshot

Investment Analysis

Archrock

Pros

Considerations

Enphase Energy

Pros

Considerations

About The Companies

Which Baskets Do They Appear In?

Which Baskets Do They Appear In?

Buy AROC or ENPH in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Archrock vs Murphy Oil

Archrock vs Magnolia Oil & Gas

Archrock vs Golar LNG

Frequently asked questions

What is the difference between revenue growth and profitability in this comparison?

How should I read metrics like ROE and debt-to-equity in this stock pairing?

What does a forward P/E tell us about valuation in this context?

Why are EBITDA and net income useful together in this comparison?

Which stock shows stronger current profitability, and how is this reflected?

How should debt impact the perceived risk of each stock?

What role does sector exposure play in evaluating these stocks?

What do the reported revenue trends suggest about growth momentum?

How should one interpret mixed mid-term technical indicators for these stocks?

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Educational disclaimer for this page.

Comparison Snapshot

About The Companies