Critical Survey: Aeluma (NASDAQ:ALMU) and ESPEY MFG & ELECTRONICS (NYSE:ESP)

Aeluma (NASDAQ:ALMU) and ESPEY MFG & ELECTRONICS (NYSE:ESP) are both small-cap manufacturing companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Insider and Institutional Ownership

36.7% of ESPEY MFG & ELECTRONICS shares are held by institutional investors. 6.8% of ESPEY MFG & ELECTRONICS shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Aeluma and ESPEY MFG & ELECTRONICS”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeluma	$1.61 million	168.30	-$2.89 million	($0.27)	-63.52
ESPEY MFG & ELECTRONICS	$45.97 million	3.04	$7.59 million	$2.68	18.39

ESPEY MFG & ELECTRONICS has higher revenue and earnings than Aeluma. Aeluma is trading at a lower price-to-earnings ratio than ESPEY MFG & ELECTRONICS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Aeluma and ESPEY MFG & ELECTRONICS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeluma	-86.85%	-87.90%	-50.73%
ESPEY MFG & ELECTRONICS	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and recommmendations for Aeluma and ESPEY MFG & ELECTRONICS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeluma	0	0	1	0	3.00
ESPEY MFG & ELECTRONICS	0	0	0	0	0.00

Aeluma currently has a consensus price target of $26.00, suggesting a potential upside of 51.60%. Given Aeluma’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Aeluma is more favorable than ESPEY MFG & ELECTRONICS.

Summary

ESPEY MFG & ELECTRONICS beats Aeluma on 8 of the 12 factors compared between the two stocks.

About Aeluma

Aeluma, Inc. develops optoelectronic and electronic devices in the United States. The company manufactures semiconductor materials and chips using compound semiconductors on diameter substrates that are used to manufacture mass market microelectronics. It offers its devices for use in mobile, automotive, AI, defence and aerospace, communication, AR/VR, and HPC applications, as well as laser emitters, transistors for integrated circuits, quantum photonic circuits, and solar cells applications. Aeluma, Inc. was formerly known as Parc Investments, Inc. and changed its name to Aeluma, Inc. June 2021. The company was founded in 2019 and is headquartered in Goleta, California.

About ESPEY MFG & ELECTRONICS

Espey Mfg. & Electronics Corp., a power electronics design and original equipment manufacturing company, designs, manufactures, and tests electronic equipment primarily for use in military and industrial applications in the United States and internationally. The company’s principal products include power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, UPS systems, antennas, and high-power radar systems for use in AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power applications. It also provides various services comprising design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, painting services, and development of automatic testing equipment. In addition, the company produces individual components, such as inductors, printed circuit boards, wires, and tests items. It serves industrial manufacturers and defense companies, the government of the United States, foreign governments, and foreign electronic equipment companies through its direct sales organization and outside sales representatives. The company was incorporated in 1928 and is based in Saratoga Springs, New York.