Analyzing Alvopetro Energy (OTCMKTS:ALVOF) and NeoVolta (NASDAQ:NEOV)

Alvopetro Energy (OTCMKTS:ALVOF) and NeoVolta (NASDAQ:NEOV) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Insider & Institutional Ownership

5.1% of NeoVolta shares are held by institutional investors. 4.0% of NeoVolta 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.

Analyst Ratings

This is a summary of recent ratings for Alvopetro Energy and NeoVolta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvopetro Energy	0	1	0	0	2.00
NeoVolta	1	2	0	0	1.67

Profitability

This table compares Alvopetro Energy and NeoVolta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alvopetro Energy	40.90%	25.91%	19.12%
NeoVolta	-63.35%	-141.89%	-89.61%

Volatility and Risk

Alvopetro Energy has a beta of -0.17, meaning that its share price is 117% less volatile than the S&P 500. Comparatively, NeoVolta has a beta of -0.92, meaning that its share price is 192% less volatile than the S&P 500.

Valuation and Earnings

This table compares Alvopetro Energy and NeoVolta”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alvopetro Energy	$57.95 million	4.15	$23.10 million	$0.66	9.84
NeoVolta	$8.43 million	9.02	-$5.03 million	($0.33)	-5.39

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

Summary

Alvopetro Energy beats NeoVolta on 9 of the 12 factors compared between the two stocks.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.