Financial Analysis: Advantage Energy (OTCMKTS:AAVVF) & NeoVolta (NASDAQ:NEOV)

NeoVolta (NASDAQ:NEOV) and Advantage Energy (OTCMKTS:AAVVF) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Risk and Volatility

NeoVolta has a beta of -0.86, indicating that its share price is 186% less volatile than the S&P 500. Comparatively, Advantage Energy has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Institutional & Insider Ownership

5.1% of NeoVolta shares are owned by institutional investors. Comparatively, 7.9% of Advantage Energy shares are owned by institutional investors. 15.2% of NeoVolta shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares NeoVolta and Advantage Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoVolta	-59.75%	-144.53%	-97.35%
Advantage Energy	8.20%	3.37%	1.87%

Earnings and Valuation

This table compares NeoVolta and Advantage Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoVolta	$8.43 million	17.57	-$5.03 million	($0.15)	-28.87
Advantage Energy	$396.54 million	3.31	$15.85 million	$0.22	35.77

Advantage Energy has higher revenue and earnings than NeoVolta. NeoVolta is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for NeoVolta and Advantage Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoVolta	1	1	0	0	1.50
Advantage Energy	0	1	1	1	3.00

NeoVolta currently has a consensus price target of $7.50, suggesting a potential upside of 73.21%. Given NeoVolta’s higher probable upside, research analysts plainly believe NeoVolta is more favorable than Advantage Energy.

Summary

Advantage Energy beats NeoVolta on 12 of the 15 factors compared between the two stocks.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.