Contrasting Sigma Lithium (NASDAQ:SGML) and Exro Technologies (OTCMKTS:EXROF)

Exro Technologies (OTCMKTS:EXROF) and Sigma Lithium (NASDAQ:SGML) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares Exro Technologies and Sigma Lithium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exro Technologies	-1,420.35%	-109.03%	-61.37%
Sigma Lithium	-24.13%	-35.97%	-9.94%

Risk and Volatility

Exro Technologies has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500. Comparatively, Sigma Lithium has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Exro Technologies and Sigma Lithium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exro Technologies	2	3	0	0	1.60
Sigma Lithium	1	2	0	0	1.67

Sigma Lithium has a consensus target price of $7.00, suggesting a potential downside of 25.77%. Given Sigma Lithium’s stronger consensus rating and higher possible upside, analysts plainly believe Sigma Lithium is more favorable than Exro Technologies.

Earnings and Valuation

This table compares Exro Technologies and Sigma Lithium”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exro Technologies	$16.84 million	0.17	-$210.86 million	($0.47)	-0.01
Sigma Lithium	$152.36 million	6.89	-$51.07 million	($0.31)	-30.42

Sigma Lithium has higher revenue and earnings than Exro Technologies. Sigma Lithium is trading at a lower price-to-earnings ratio than Exro Technologies, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

64.9% of Sigma Lithium shares are held by institutional investors. 48.6% of Sigma Lithium shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sigma Lithium beats Exro Technologies on 11 of the 13 factors compared between the two stocks.

About Exro Technologies

Exro Technologies Inc. focuses on developing generation power-control electronics in Canada. The company offers Exro Coil Driver, which allows the motor to switch between different operational profiles in real-time, as well as have multiple gears for scooters, electric bikes, recreational, light electric cars, motorcycles, fleet vans, electric buses, passenger vehicles, long-haul trucks, and industrial vehicles markets; and Exro Cell Driver, a stationary energy storage system for commercial and industrial energy storage applications. It also provides electric vehicle consulting and engineering services. The company was incorporated in 2014 and is headquartered in Calgary, Canada.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil. It serves electric vehicle industries worldwide. The company was formerly known as Sigma Lithium Resources Corporation and changed its name to Sigma Lithium Corporation in July 2021. The company is headquartered in São Paulo, Brazil.