Polar Power (NASDAQ: POLA) and Orbotech (NASDAQ:ORBK) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Institutional and Insider Ownership

8.5% of Polar Power shares are owned by institutional investors. Comparatively, 69.9% of Orbotech shares are owned by institutional investors. 10.4% of Orbotech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Polar Power and Orbotech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polar Power N/A 19.35% 16.54%
Orbotech 11.03% 14.98% 10.33%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Polar Power and Orbotech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polar Power 0 0 1 0 3.00
Orbotech 0 1 6 0 2.86

Polar Power presently has a consensus price target of $7.00, indicating a potential upside of 29.15%. Orbotech has a consensus price target of $41.43, indicating a potential downside of 5.80%. Given Polar Power’s stronger consensus rating and higher possible upside, research analysts plainly believe Polar Power is more favorable than Orbotech.

Valuation and Earnings

This table compares Polar Power and Orbotech’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Polar Power $22.14 million 2.48 $6.29 million N/A N/A
Orbotech $818.31 million 2.57 $158.40 million $1.86 23.65

Orbotech has higher revenue and earnings than Polar Power.

Summary

Orbotech beats Polar Power on 7 of the 11 factors compared between the two stocks.

Polar Power Company Profile

Polar Power, Inc. is engaged in designing, manufacturing and selling direct current (DC) power systems for applications primarily in the telecommunications, military, electric vehicle charging, cogeneration, distributed power and uninterruptable power supply markets. Within the telecommunications market, the Company’s DC power systems provide DC power to service applications that do not have access to the utility grid (such as off-grid applications) or have critical power needs and cannot be without power in the event of utility grid failure (such as back-up power applications). Its product offerings include DC base power systems, DC hybrid power systems and DC solar hybrid power systems. The Company’s technologies include Permanent Magnet Homopolar Hybrid (PMHH) Technology and Supra Controller Technology. Its power and control system architecture is controlled by its digital control system, Supra Controller, which contains software configured to meet specific application needs.

Orbotech Company Profile

Orbotech Ltd. is a supplier of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Company provides cutting-edge solutions for use in the manufacture of printed circuit boards (PCBs), flat panel displays (FPDs) and semiconductor devices (SDs). The Company’s segments include Production Solutions for the Electronics Industry, Solar Energy and Recognition Software. The Production Solutions for the Electronics Industry segment is engaged in the design, development, manufacture, marketing and service of yield-enhancing and process-enabling solutions for the manufacture of electronics products. The Solar Energy segment is engaged in the design, development, manufacture and marketing of solar photovoltaic energy systems that produce electricity directly from sunlight. The Recognition Software segment is engaged in the development and marketing of check processing and healthcare payment automation solutions.

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