Comparing Electrovaya (NASDAQ:ELVA) & Exro Technologies (OTCMKTS:EXROF)

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

Volatility and Risk

Exro Technologies has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Electrovaya has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Exro Technologies	-1,420.35%	N/A	-61.37%
Electrovaya	5.27%	14.21%	6.46%

Institutional and Insider Ownership

22.5% of Electrovaya shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Exro Technologies and Electrovaya”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exro Technologies	$16.84 million	0.11	-$210.86 million	($0.47)	-0.01
Electrovaya	$63.83 million	8.14	$3.36 million	$0.09	120.33

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Exro Technologies and Electrovaya, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exro Technologies	2	2	0	0	1.50
Electrovaya	0	2	3	1	2.83

Electrovaya has a consensus price target of $10.13, suggesting a potential downside of 6.51%. Given Electrovaya’s stronger consensus rating and higher probable upside, analysts clearly believe Electrovaya is more favorable than Exro Technologies.

Summary

Electrovaya beats Exro Technologies on 14 of the 14 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 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.