Critical Review: Acorn Energy (ACFN) and Its Peers

Volatility and Risk

Acorn Energy has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500. Comparatively, Acorn Energy’s rivals have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

Insider and Institutional Ownership

49.9% of shares of all “ELEC PRODS – MISC” companies are owned by institutional investors. 35.0% of Acorn Energy shares are owned by insiders. Comparatively, 16.1% of shares of all “ELEC PRODS – MISC” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Acorn Energy and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Acorn Energy	$10.99 million	$6.29 million	6.74
Acorn Energy Competitors	$3.67 billion	$266.04 million	3.00

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

Profitability

This table compares Acorn Energy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acorn Energy	56.00%	78.08%	28.31%
Acorn Energy Competitors	-154.16%	-93.85%	-8.47%

Summary

Acorn Energy beats its rivals on 5 of the 9 factors compared.

About Acorn Energy

Acorn Energy, Inc., together with its subsidiaries, develops and markets wireless remote monitoring and control systems for various markets in the United States and internationally. It operates in two segments, Power Generation (PG) Monitoring and Cathodic Protection (CP) Monitoring. The PG segment provides wireless remote monitoring and control systems, and services for critical assets, which include stand-by power generators, pumps, pumpjacks, light towers, turbines, compressors, fire pumps, and other industrial equipment; and Internet of Things applications. The CP segment offers remote monitoring and control products for cathodic protection systems utilized in gas pipelines for gas utilities market and pipeline operators. The company was incorporated in 1986 and is based in Wilmington, Delaware.