ESS Tech (NYSE:GWH – Get Free Report) and Electrovaya (NASDAQ:ELVA – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
46.8% of ESS Tech shares are owned by institutional investors. Comparatively, 22.5% of Electrovaya shares are owned by institutional investors. 1.8% of ESS Tech shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares ESS Tech and Electrovaya’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ESS Tech | -1,028.89% | -71.44% | -53.77% |
| Electrovaya | 1.79% | 12.44% | 2.40% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ESS Tech | 0 | 2 | 1 | 0 | 2.33 |
| Electrovaya | 0 | 0 | 4 | 0 | 3.00 |
ESS Tech presently has a consensus target price of $2.14, indicating a potential upside of 221.09%. Electrovaya has a consensus target price of $11.33, indicating a potential upside of 267.97%. Given Electrovaya’s stronger consensus rating and higher probable upside, analysts clearly believe Electrovaya is more favorable than ESS Tech.
Earnings & Valuation
This table compares ESS Tech and Electrovaya’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ESS Tech | $7.54 million | 15.44 | -$77.58 million | ($0.49) | -1.36 |
| Electrovaya | $43.37 million | 2.41 | -$1.48 million | $0.02 | 154.00 |
Electrovaya has higher revenue and earnings than ESS Tech. ESS Tech is trading at a lower price-to-earnings ratio than Electrovaya, indicating that it is currently the more affordable of the two stocks.
Summary
Electrovaya beats ESS Tech on 10 of the 13 factors compared between the two stocks.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
About Electrovaya
Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as competencies in building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.
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