Contrasting Comp En De Mn Cemig ADS (NYSE:CIG) & Polar Power (NASDAQ:POLA)

Comp En De Mn Cemig ADS (NYSE:CIG) and Polar Power (NASDAQ:POLA) are both utilities companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Earnings & Valuation

This table compares Comp En De Mn Cemig ADS and Polar Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comp En De Mn Cemig ADS	$7.38 billion	N/A	$1.32 billion	$0.20	10.12
Polar Power	$13.97 million	0.37	-$4.68 million	($2.24)	-0.87

Comp En De Mn Cemig ADS has higher revenue and earnings than Polar Power. Polar Power is trading at a lower price-to-earnings ratio than Comp En De Mn Cemig ADS, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

26.1% of Polar Power shares are held by institutional investors. 30.8% of Polar Power shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Comp En De Mn Cemig ADS has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Polar Power has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Comp En De Mn Cemig ADS and Polar Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comp En De Mn Cemig ADS	1	1	0	0	1.50
Polar Power	1	0	0	0	1.00

Profitability

This table compares Comp En De Mn Cemig ADS and Polar Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comp En De Mn Cemig ADS	9.45%	15.20%	6.81%
Polar Power	-104.14%	-135.21%	-55.02%

Summary

Comp En De Mn Cemig ADS beats Polar Power on 9 of the 11 factors compared between the two stocks.

About Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.