Contrasting NOVONIX (NASDAQ:NVX) and Polar Power (NASDAQ:POLA)

NOVONIX (NASDAQ:NVX) and Polar Power (NASDAQ:POLA) are both small-cap computer and technology companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Profitability

This table compares NOVONIX and Polar Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Polar Power	-55.56%	-52.52%	-26.64%

Risk and Volatility

NOVONIX has a beta of 2.97, suggesting that its stock price is 197% more volatile than the S&P 500. Comparatively, Polar Power has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Institutional and Insider Ownership

0.1% of NOVONIX shares are owned by institutional investors. Comparatively, 26.1% of Polar Power shares are owned by institutional investors. 23.7% of NOVONIX shares are owned by insiders. Comparatively, 32.5% of Polar Power shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares NOVONIX and Polar Power”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$8.06 million	32.77	-$46.25 million	N/A	N/A
Polar Power	$11.95 million	0.69	-$6.55 million	($0.47)	-1.00

Polar Power has higher revenue and earnings than NOVONIX.

Analyst Recommendations

This is a breakdown of current ratings and price targets for NOVONIX and Polar Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	0	0	1	0	3.00
Polar Power	0	0	0	0	0.00

NOVONIX presently has a consensus price target of $4.00, indicating a potential upside of 86.92%. Given NOVONIX’s stronger consensus rating and higher probable upside, analysts clearly believe NOVONIX is more favorable than Polar Power.

Summary

NOVONIX beats Polar Power on 8 of the 12 factors compared between the two stocks.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.

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.