Polar Power (NASDAQ: POLA) and Kimball Electronics (NASDAQ:KE) are both small-cap utilities companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

8.5% of Polar Power shares are held by institutional investors. Comparatively, 56.7% of Kimball Electronics shares are held by institutional investors. 3.9% of Kimball Electronics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Polar Power and Kimball Electronics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polar Power 0 0 1 0 3.00
Kimball Electronics 0 0 1 0 3.00

Polar Power currently has a consensus target price of $7.00, indicating a potential upside of 29.15%. Kimball Electronics has a consensus target price of $17.00, indicating a potential downside of 22.37%. Given Polar Power’s higher possible upside, equities analysts plainly believe Polar Power is more favorable than Kimball Electronics.

Profitability

This table compares Polar Power and Kimball Electronics’ 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%
Kimball Electronics 3.67% 9.24% 5.74%

Earnings & Valuation

This table compares Polar Power and Kimball Electronics’ gross revenue, earnings per share 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
Kimball Electronics $930.91 million 0.63 $62.96 million $1.24 17.66

Kimball Electronics has higher revenue and earnings than Polar Power.

Summary

Kimball Electronics beats Polar Power on 5 of the 9 factors compared between the two stocks.

About Polar Power

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.

About Kimball Electronics

Kimball Electronics, Inc. (Kimball Electronics) is an electronics manufacturing services (EMS) company. The Company is engaged in producing electronics for the automotive, medical, industrial and public safety markets. It provides design, engineering, manufacturing, packaging and distribution of electronic assemblies and circuit boards on a contract basis to a range of industries. The Company offers various engineering, manufacturing and supply chain services, such as design services; production and testing of printed circuit board assemblies (PCBAS); industrialization and automation of manufacturing processes; product design and process validation and qualification; reliability testing, which include testing of products under a series of environmental conditions; assembly, production and packaging of other related non-electronic products, and product life cycle management. It is engaged in producing safety critical electronic assemblies for the automotive market.

Receive News & Ratings for Polar Power Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Polar Power Inc. and related companies with MarketBeat.com's FREE daily email newsletter.