Critical Review: ESS Tech (GWH) versus The Competition

ESS Tech (NYSE:GWHGet Rating) is one of 59 publicly-traded companies in the “Miscellaneous electrical machinery, equipment, & supplies” industry, but how does it compare to its peers? We will compare ESS Tech to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, profitability, risk and institutional ownership.

Institutional and Insider Ownership

40.8% of ESS Tech shares are held by institutional investors. Comparatively, 46.4% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are held by institutional investors. 6.8% of ESS Tech shares are held by insiders. Comparatively, 13.2% of shares of all “Miscellaneous electrical machinery, equipment, & supplies” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares ESS Tech and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESS Tech N/A -57.87% -34.07%
ESS Tech Competitors -74.53% -113.49% -8.38%

Earnings & Valuation

This table compares ESS Tech and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ESS Tech N/A -$477.12 million -0.52
ESS Tech Competitors $671.41 million $21.29 million -1.00

ESS Tech’s peers have higher revenue and earnings than ESS Tech. ESS Tech is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations and price targets for ESS Tech and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESS Tech 0 3 6 0 2.67
ESS Tech Competitors 40 431 916 34 2.66

ESS Tech currently has a consensus target price of $14.64, suggesting a potential upside of 284.22%. As a group, “Miscellaneous electrical machinery, equipment, & supplies” companies have a potential upside of 62.44%. Given ESS Tech’s stronger consensus rating and higher probable upside, research analysts clearly believe ESS Tech is more favorable than its peers.

Risk & Volatility

ESS Tech has a beta of 2.79, indicating that its share price is 179% more volatile than the S&P 500. Comparatively, ESS Tech’s peers have a beta of 0.57, indicating that their average share price is 43% less volatile than the S&P 500.

Summary

ESS Tech beats its peers on 7 of the 13 factors compared.

About ESS Tech

(Get Rating)

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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