Comparing NeoVolta (NASDAQ:NEOV) & OPAL Fuels (NASDAQ:OPAL)

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

Profitability

This table compares OPAL Fuels and NeoVolta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OPAL Fuels	1.98%	77.65%	0.75%
NeoVolta	-54.71%	-284.92%	-127.18%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for OPAL Fuels and NeoVolta, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OPAL Fuels	3	2	0	0	1.40
NeoVolta	1	1	0	0	1.50

OPAL Fuels presently has a consensus target price of $2.72, suggesting a potential upside of 11.34%. Given OPAL Fuels’ higher probable upside, research analysts plainly believe OPAL Fuels is more favorable than NeoVolta.

Volatility & Risk

OPAL Fuels has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, NeoVolta has a beta of -0.66, meaning that its share price is 166% less volatile than the S&P 500.

Valuation and Earnings

This table compares OPAL Fuels and NeoVolta”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OPAL Fuels	$348.98 million	1.21	$14.75 million	$0.15	16.27
NeoVolta	$18.06 million	7.26	-$5.03 million	($0.29)	-10.59

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

Institutional and Insider Ownership

12.2% of OPAL Fuels shares are owned by institutional investors. Comparatively, 5.1% of NeoVolta shares are owned by institutional investors. 84.6% of OPAL Fuels shares are owned by company insiders. Comparatively, 4.0% of NeoVolta shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

OPAL Fuels beats NeoVolta on 11 of the 13 factors compared between the two stocks.

About OPAL Fuels

OPAL Fuels Inc., together with its subsidiaries, engages in the production and distribution of renewable natural gas for use as a vehicle fuel for heavy and medium-duty trucking fleets. It also designs, develops, constructs, operates, and services fueling stations for trucking fleets that use natural gas to displace diesel as transportation fuel. In addition, it offers design, development, and construction services for hydrogen fueling stations. Further, the company engages in the generation and sale of renewable power to utilities. OPAL Fuels Inc. is based in White Plains, New York.

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.