Head-To-Head Review: Stem (NYSE:STEM) versus Electrovaya (NASDAQ:ELVA)

Stem (NYSE:STEM) and Electrovaya (NASDAQ:ELVA) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, dividends, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares Stem and Electrovaya”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stem	$461.52 million	0.19	-$140.41 million	($4.78)	-0.11
Electrovaya	$49.41 million	1.44	-$1.48 million	($0.01)	-209.50

Electrovaya has lower revenue, but higher earnings than Stem. Electrovaya is trading at a lower price-to-earnings ratio than Stem, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Stem and Electrovaya, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stem	0	9	2	0	2.18
Electrovaya	0	0	5	0	3.00

Stem currently has a consensus price target of $2.09, suggesting a potential upside of 286.32%. Electrovaya has a consensus price target of $8.75, suggesting a potential upside of 317.66%. Given Electrovaya’s stronger consensus rating and higher probable upside, analysts plainly believe Electrovaya is more favorable than Stem.

Insider & Institutional Ownership

61.6% of Stem shares are owned by institutional investors. Comparatively, 22.5% of Electrovaya shares are owned by institutional investors. 10.2% of Stem shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Stem and Electrovaya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stem	-213.33%	-63.98%	-14.19%
Electrovaya	-1.34%	-8.02%	-1.63%

Risk & Volatility

Stem has a beta of 1.68, meaning that its share price is 68% more volatile than the S&P 500. Comparatively, Electrovaya has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Summary

Electrovaya beats Stem on 9 of the 14 factors compared between the two stocks.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.

About Electrovaya

Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as competencies in building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.