Critical Survey: Flux Power (NASDAQ:FLUX) versus XCHG (NASDAQ:XCH)

Flux Power (NASDAQ:FLUX) and XCHG (NASDAQ:XCH) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, profitability, dividends and earnings.

Profitability

This table compares Flux Power and XCHG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flux Power	-10.05%	N/A	-17.70%
XCHG	N/A	N/A	N/A

Institutional and Insider Ownership

38.0% of Flux Power shares are held by institutional investors. 26.0% of Flux Power shares 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.

Earnings & Valuation

This table compares Flux Power and XCHG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flux Power	$66.43 million	1.51	-$6.67 million	($0.40)	-14.85
XCHG	N/A	N/A	N/A	N/A	N/A

XCHG has lower revenue, but higher earnings than Flux Power.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Flux Power and XCHG, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flux Power	1	0	2	1	2.75
XCHG	1	0	0	0	1.00

Flux Power presently has a consensus target price of $6.00, suggesting a potential upside of 1.01%. Given Flux Power’s stronger consensus rating and higher probable upside, equities analysts plainly believe Flux Power is more favorable than XCHG.

Summary

Flux Power beats XCHG on 7 of the 9 factors compared between the two stocks.

About Flux Power

Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie pallet packs; and smart wall mounted chargers to interface with its BMS. It sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. The company is headquartered in Vista, California.

About XCHG

XCHG Limited engages in designing, manufacturing, and selling of electric vehicle (EV) chargers under the X-Charge brand name in Europe, the People’s Republic of China, and internationally. The company offers direct current (DC) fast chargers under the C6 series and C7 series; and battery-integrated DC fast chargers under the Net Zero series, as well as software system upgrades and hardware maintenance services. It serves EV manufacturers, energy players, and charge point operators. The company was founded in 2015 and is headquartered in Beijing, the People’s Republic of China.