Analyzing EnerSys (NYSE:ENS) and Electra Battery Materials (NASDAQ:ELBM)

Electra Battery Materials (NASDAQ:ELBM) and EnerSys (NYSE:ENS) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Risk & Volatility

Electra Battery Materials has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500. Comparatively, EnerSys has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Electra Battery Materials and EnerSys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-7.87%	-4.79%
EnerSys	7.49%	20.09%	9.52%

Institutional & Insider Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. Comparatively, 94.9% of EnerSys shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by company insiders. Comparatively, 1.9% of EnerSys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Electra Battery Materials and EnerSys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	0	0	2	0	3.00
EnerSys	0	2	1	0	2.33

Electra Battery Materials currently has a consensus target price of $1.93, indicating a potential upside of 362.52%. EnerSys has a consensus target price of $126.00, indicating a potential upside of 38.04%. Given Electra Battery Materials’ stronger consensus rating and higher probable upside, research analysts plainly believe Electra Battery Materials is more favorable than EnerSys.

Valuation and Earnings

This table compares Electra Battery Materials and EnerSys’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electra Battery Materials	N/A	N/A	$9.65 million	($0.38)	-1.10
EnerSys	$3.66 billion	1.01	$175.81 million	$6.61	13.81

EnerSys has higher revenue and earnings than Electra Battery Materials. Electra Battery Materials is trading at a lower price-to-earnings ratio than EnerSys, indicating that it is currently the more affordable of the two stocks.

Summary

EnerSys beats Electra Battery Materials on 8 of the 13 factors compared between the two stocks.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

About EnerSys

EnerSys provides various stored energy solutions for industrial applications worldwide. It operates in three segments: Energy Systems, Motive Power, and Specialty. The company offers uninterruptible power systems applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, renewable, and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. It also provides motive power products that are used to provide power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications. In addition, the company offers mining equipment, diesel locomotive starting, and other rail equipment. Further, it provides specialty batteries for starting, lighting, and ignition applications in transportation; and energy solutions for satellites, military aircraft, submarines, ships, and other tactical vehicles, as well as medical and security systems. Additionally, the company offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. The company sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was incorporated in 2000 and is headquartered in Reading, Pennsylvania.