Electrovaya (NASDAQ:ELVA – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Profitability
This table compares Electrovaya and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Electrovaya | 1.79% | 12.44% | 2.40% |
| ESS Tech | -1,028.89% | -71.44% | -53.77% |
Institutional and Insider Ownership
22.5% of Electrovaya shares are owned by institutional investors. Comparatively, 46.8% of ESS Tech shares are owned by institutional investors. 1.8% of ESS Tech shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Electrovaya | 0 | 0 | 4 | 0 | 3.00 |
| ESS Tech | 0 | 2 | 1 | 0 | 2.33 |
Electrovaya currently has a consensus price target of $11.33, suggesting a potential upside of 279.04%. ESS Tech has a consensus price target of $2.14, suggesting a potential upside of 210.23%. Given Electrovaya’s stronger consensus rating and higher possible upside, equities analysts plainly believe Electrovaya is more favorable than ESS Tech.
Valuation & Earnings
This table compares Electrovaya and ESS Tech’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Electrovaya | $44.06 million | 2.30 | -$1.48 million | $0.02 | 149.57 |
| ESS Tech | $7.54 million | 15.98 | -$77.58 million | ($0.49) | -1.41 |
Electrovaya has higher revenue and earnings than ESS Tech. ESS Tech is trading at a lower price-to-earnings ratio than Electrovaya, indicating that it is currently the more affordable of the two stocks.
Summary
Electrovaya beats ESS Tech on 9 of the 12 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 ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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