Analyzing Bel Fuse (NASDAQ:BELFB) and NOVONIX (NASDAQ:NVX)

Bel Fuse (NASDAQ:BELFB) and NOVONIX (NASDAQ:NVX) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Bel Fuse and NOVONIX, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bel Fuse	0	1	6	0	2.86
NOVONIX	1	0	0	0	1.00

Bel Fuse presently has a consensus target price of $173.00, indicating a potential downside of 11.96%. Given Bel Fuse’s stronger consensus rating and higher probable upside, equities analysts clearly believe Bel Fuse is more favorable than NOVONIX.

Risk and Volatility

Bel Fuse has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, NOVONIX has a beta of 2.63, meaning that its share price is 163% more volatile than the S&P 500.

Profitability

This table compares Bel Fuse and NOVONIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bel Fuse	10.04%	16.34%	6.76%
NOVONIX	N/A	N/A	N/A

Earnings and Valuation

This table compares Bel Fuse and NOVONIX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bel Fuse	$534.79 million	4.65	$40.96 million	$5.20	37.79
NOVONIX	$5.85 million	39.85	-$74.82 million	N/A	N/A

Bel Fuse has higher revenue and earnings than NOVONIX.

Insider & Institutional Ownership

58.4% of Bel Fuse shares are held by institutional investors. Comparatively, 0.1% of NOVONIX shares are held by institutional investors. 5.4% of Bel Fuse shares are held by insiders. Comparatively, 23.7% of NOVONIX shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Bel Fuse beats NOVONIX on 9 of the 12 factors compared between the two stocks.

About Bel Fuse

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People’s Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.