Analyzing Solid Power (NASDAQ:SLDP) & FREYR Battery (NYSE:FREY)

Solid Power (NASDAQ:SLDP) and FREYR Battery (NYSE:FREY) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

Solid Power has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, FREYR Battery has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Earnings & Valuation

This table compares Solid Power and FREYR Battery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$19.74 million	11.93	-$65.55 million	($0.38)	-3.50
FREYR Battery	N/A	N/A	-$71.94 million	($0.62)	-1.71

Solid Power has higher revenue and earnings than FREYR Battery. Solid Power is trading at a lower price-to-earnings ratio than FREYR Battery, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Solid Power and FREYR Battery, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	1	2	0	2.25
FREYR Battery	1	3	0	0	1.75

Solid Power currently has a consensus target price of $3.00, suggesting a potential upside of 125.56%. FREYR Battery has a consensus target price of $3.63, suggesting a potential upside of 242.77%. Given FREYR Battery’s higher probable upside, analysts plainly believe FREYR Battery is more favorable than Solid Power.

Profitability

This table compares Solid Power and FREYR Battery’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Power	-393.42%	-15.87%	-14.90%
FREYR Battery	N/A	-15.47%	-13.42%

Institutional & Insider Ownership

33.7% of Solid Power shares are held by institutional investors. Comparatively, 52.3% of FREYR Battery shares are held by institutional investors. 7.2% of Solid Power shares are held by company insiders. Comparatively, 25.5% of FREYR Battery shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

FREYR Battery beats Solid Power on 7 of the 13 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

About FREYR Battery

FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. The company develops battery cell manufacturing facilities. It serves its products to energy storage systems and commercial mobility, including marine applications and commercial vehicles markets. The company is headquartered in Luxembourg.