Hayward (NYSE:HAYW – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Volatility and Risk
Hayward has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.
Profitability
This table compares Hayward and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hayward | 13.51% | 11.27% | 5.59% |
| ESS Tech | -1,045.28% | -1,141.31% | -140.58% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hayward | 0 | 1 | 3 | 1 | 3.00 |
| ESS Tech | 1 | 3 | 1 | 0 | 2.00 |
Hayward currently has a consensus target price of $19.25, suggesting a potential upside of 37.90%. ESS Tech has a consensus target price of $2.50, suggesting a potential upside of 100.96%. Given ESS Tech’s higher possible upside, analysts clearly believe ESS Tech is more favorable than Hayward.
Institutional and Insider Ownership
46.8% of ESS Tech shares are held by institutional investors. 5.1% of Hayward shares are held by insiders. Comparatively, 1.7% of ESS Tech shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Hayward and ESS Tech”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hayward | $1.12 billion | 2.70 | $151.57 million | $0.68 | 20.53 |
| ESS Tech | $1.58 million | 21.39 | -$63.44 million | ($4.33) | -0.29 |
Hayward has higher revenue and earnings than ESS Tech. ESS Tech is trading at a lower price-to-earnings ratio than Hayward, indicating that it is currently the more affordable of the two stocks.
Summary
Hayward beats ESS Tech on 11 of the 15 factors compared between the two stocks.
About Hayward
Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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