Critical Contrast: Electrovaya (NASDAQ:ELVA) and SES AI (NYSE:SES)

Electrovaya (NASDAQ:ELVA) and SES AI (NYSE:SES) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Earnings & Valuation

This table compares Electrovaya and SES AI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electrovaya	$43.67 million	2.06	-$1.49 million	($0.04)	-56.00
SES AI	$2.04 million	86.26	-$53.40 million	($0.31)	-1.57

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

Profitability

This table compares Electrovaya and SES AI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electrovaya	-3.88%	-15.42%	-4.24%
SES AI	N/A	-22.91%	-20.42%

Insider & Institutional Ownership

22.5% of Electrovaya shares are held by institutional investors. Comparatively, 29.8% of SES AI shares are held by institutional investors. 15.1% of SES AI shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Electrovaya has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Electrovaya and SES AI, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electrovaya	0	0	4	1	3.20
SES AI	1	1	0	0	1.50

Electrovaya currently has a consensus price target of $6.10, indicating a potential upside of 172.32%. SES AI has a consensus price target of $1.25, indicating a potential upside of 156.15%. Given Electrovaya’s stronger consensus rating and higher probable upside, analysts clearly believe Electrovaya is more favorable than SES AI.

Summary

Electrovaya beats SES AI on 10 of the 15 factors compared between the two stocks.

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.

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.