Critical Comparison: Enovix (NASDAQ:ENVX) versus Powell Industries (NASDAQ:POWL)

Enovix (NASDAQ:ENVX) and Powell Industries (NASDAQ:POWL) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Profitability

This table compares Enovix and Powell Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enovix	-473.89%	-64.50%	-19.31%
Powell Industries	16.49%	27.51%	15.94%

Volatility & Risk

Enovix has a beta of 2.31, indicating that its share price is 131% more volatile than the S&P 500. Comparatively, Powell Industries has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Valuation and Earnings

This table compares Enovix and Powell Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovix	$31.82 million	17.66	-$156.74 million	($0.81)	-3.16
Powell Industries	$1.10 billion	6.18	$180.75 million	$5.21	35.94

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

Insider & Institutional Ownership

50.9% of Enovix shares are owned by institutional investors. Comparatively, 89.8% of Powell Industries shares are owned by institutional investors. 12.7% of Enovix shares are owned by company insiders. Comparatively, 2.2% of Powell Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Enovix and Powell Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enovix	2	3	6	1	2.50
Powell Industries	0	3	2	2	2.86

Enovix presently has a consensus price target of $11.77, indicating a potential upside of 359.87%. Powell Industries has a consensus price target of $215.42, indicating a potential upside of 15.05%. Given Enovix’s higher possible upside, equities analysts clearly believe Enovix is more favorable than Powell Industries.

Summary

Powell Industries beats Enovix on 10 of the 15 factors compared between the two stocks.

About Enovix

Enovix Corporation designs develops and manufactures silicon-anode lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.

About Powell Industries

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems. The company’s principal products include integrated power control room substations, custom-engineered modules, electrical houses, medium-voltage circuit breakers, monitoring and control communications systems, motor control centers, switches, and bus duct systems, as well as traditional and arc-resistant distribution switchgears and control gears. Its products have application in voltages ranging from 480 volts to 38,000 volts. The company also provide field service inspection, installation, commissioning, modification and repair, spare parts, retrofit and retrofill components for existing systems, and replacement circuit breakers for switchgear. It serves onshore and offshore production, liquefied natural gas facilities and terminals, pipelines, refineries, and petrochemical plants, as well as electric utility, light rail traction power, mining and metals, pulp and paper, data centers and other municipal, commercial, and industrial markets. The company has operations in the United States, Canada, the Middle East, Africa, Europe, Mexico, and Central and South America. Powell Industries, Inc. was founded in 1947 and is headquartered in Houston, Texas.