Comparing Stem (NYSE:STEM) & Solid Power (NASDAQ:SLDP)

Stem (NYSE:STEMGet Rating) and Solid Power (NASDAQ:SLDPGet Rating) 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 institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Institutional and Insider Ownership

50.3% of Stem shares are held by institutional investors. Comparatively, 37.4% of Solid Power shares are held by institutional investors. 1.3% of Stem shares are held by insiders. Comparatively, 11.3% of Solid Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Stem and Solid Power’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stem $127.37 million 9.74 -$101.21 million ($1.53) -5.26
Solid Power $2.71 million 563.18 $18.09 million N/A N/A

Solid Power has lower revenue, but higher earnings than Stem.

Analyst Ratings

This is a summary of recent ratings and price targets for Stem and Solid Power, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stem 0 1 6 0 2.86
Solid Power 0 0 1 0 3.00

Stem currently has a consensus target price of $24.14, indicating a potential upside of 198.06%. Solid Power has a consensus target price of $13.00, indicating a potential upside of 47.56%. Given Stem’s higher probable upside, equities research analysts clearly believe Stem is more favorable than Solid Power.

Profitability

This table compares Stem and Solid Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stem -26.88% 5.83% 3.01%
Solid Power N/A 5.62% 3.08%

Summary

Solid Power beats Stem on 6 of the 11 factors compared between the two stocks.

About Stem (Get Rating)

Stem, Inc. operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. It offers energy storage systems sourced from original equipment manufacturers (OEMs). The company also provides Athena, an artificial intelligence platform, which offers battery hardware and software-enabled services to operate the energy storage systems. In addition, it offers system design and engineering services, supply chain management, energy storage value stream optimization, warranty and preventive maintenance plan management, operation and maintenance reporting, and program enrollment and incentive management services. The company serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. Stem, Inc. was incorporated in 2009 and is headquartered in San Francisco, California.

About Solid Power (Get Rating)

Solid Power, Inc. focuses on the development and commercialization of all-solid-state battery cells and solid electrolyte materials for the battery-powered electric vehicle market in the United States. The company was founded in 2011 and is headquartered in Louisville, Colorado.

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