Head to Head Analysis: Electrovaya (NASDAQ:ELVA) versus ESS Tech (NYSE:GWH)

Electrovaya (NASDAQ:ELVA) and ESS Tech (NYSE:GWH) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Valuation & Earnings

This table compares Electrovaya and ESS Tech’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electrovaya	$43.37 million	2.41	-$1.48 million	$0.02	154.00
ESS Tech	$7.54 million	15.44	-$77.58 million	($0.49)	-1.36

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.

Insider and Institutional Ownership

22.5% of Electrovaya shares are held by institutional investors. Comparatively, 46.8% of ESS Tech shares are held by institutional investors. 1.8% of ESS Tech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Electrovaya and ESS Tech, as provided by MarketBeat.com.

	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 target price of $11.33, indicating a potential upside of 267.97%. ESS Tech has a consensus target price of $2.14, indicating a potential upside of 221.09%. Given Electrovaya’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Electrovaya is more favorable than ESS Tech.

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%

Summary

Electrovaya beats ESS Tech on 10 of the 13 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.