Comparing FREYR Battery (NYSE:FREY) and Electra Battery Materials (NASDAQ:ELBM)

Electra Battery Materials (NASDAQ:ELBM) and FREYR Battery (NYSE:FREY) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. Comparatively, 52.3% of FREYR Battery shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Electra Battery Materials and FREYR Battery, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	0	0	2	0	3.00
FREYR Battery	1	4	0	0	1.80

Electra Battery Materials currently has a consensus price target of $1.93, suggesting a potential upside of 375.66%. FREYR Battery has a consensus price target of $5.23, suggesting a potential upside of 207.35%. Given Electra Battery Materials’ stronger consensus rating and higher probable upside, research analysts clearly believe Electra Battery Materials is more favorable than FREYR Battery.

Profitability

This table compares Electra Battery Materials and FREYR Battery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-7.87%	-4.79%
FREYR Battery	N/A	-13.98%	-11.76%

Valuation & Earnings

This table compares Electra Battery Materials and FREYR Battery’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electra Battery Materials	N/A	N/A	$9.65 million	($0.38)	-1.07
FREYR Battery	N/A	N/A	-$71.94 million	($0.51)	-3.33

FREYR Battery is trading at a lower price-to-earnings ratio than Electra Battery Materials, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Electra Battery Materials has a beta of 2.69, suggesting that its stock price is 169% more volatile than the S&P 500. Comparatively, FREYR Battery has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Summary

Electra Battery Materials beats FREYR Battery on 10 of the 11 factors compared between the two stocks.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

About FREYR Battery

FREYR Battery engages in the production and sale of battery cells for energy storage system, electric mobility, marine, and aviation applications in Europe and internationally. The company designs and manufactures lithium-ion based battery cell facilities. FREYR Battery was founded in 2018 and is based in Luxembourg.