Polar Power (NASDAQ: POLA) and A. O. Smith (NYSE:AOS) are both utilities companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Valuation and Earnings
This table compares Polar Power and A. O. Smith’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Polar Power||$22.80 million||1.94||$4.40 million||N/A||N/A|
|A. O. Smith||$3.00 billion||3.71||$296.50 million||$1.70||38.02|
A. O. Smith pays an annual dividend of $0.72 per share and has a dividend yield of 1.1%. Polar Power does not pay a dividend. A. O. Smith pays out 42.4% of its earnings in the form of a dividend. A. O. Smith has raised its dividend for 12 consecutive years.
This table compares Polar Power and A. O. Smith’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|A. O. Smith||9.89%||23.30%||12.38%|
Risk & Volatility
Polar Power has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Institutional & Insider Ownership
7.3% of Polar Power shares are owned by institutional investors. Comparatively, 75.2% of A. O. Smith shares are owned by institutional investors. 61.3% of Polar Power shares are owned by insiders. Comparatively, 1.3% of A. O. Smith shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations for Polar Power and A. O. Smith, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|A. O. Smith||0||3||4||0||2.57|
Polar Power currently has a consensus price target of $5.00, suggesting a potential upside of 14.68%. A. O. Smith has a consensus price target of $66.40, suggesting a potential upside of 2.72%. Given Polar Power’s higher probable upside, analysts plainly believe Polar Power is more favorable than A. O. Smith.
A. O. Smith beats Polar Power on 12 of the 15 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.
A. O. Smith Company Profile
A. O. Smith Corporation operates through two segments: North America and Rest of World. The Company’s Rest of World segment primarily consists of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas, gas tankless and electric water heaters, as well as water treatment products. Both segments primarily manufacture and market in their respective regions of the world. Its North America segment manufactures and globally markets specialty commercial water heating equipment, condensing and non-condensing boilers and water systems tanks. It also manufactures and markets in-home air purification products in China. It serves residential and commercial end markets in North America with a range of products, which include water heaters, boilers and other. It supplies water heaters to the residential market in China with a broad product offering, including electric, gas, gas tankless, heat pump and solar units, as well as combi boilers.
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