Critical Comparison: Gauzy (NASDAQ:GAUZ) and ESS Tech (NYSE:GWH)

ESS Tech (NYSE:GWH) and Gauzy (NASDAQ:GAUZ) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.

Insider and Institutional Ownership

46.8% of ESS Tech shares are owned by institutional investors. 2.3% of ESS Tech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ESS Tech and Gauzy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-1,263.79%	-101.96%	-66.46%
Gauzy	-66.25%	N/A	-34.21%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ESS Tech and Gauzy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	2	4	2	1	2.22
Gauzy	0	0	4	0	3.00

ESS Tech presently has a consensus price target of $14.58, suggesting a potential upside of 212.95%. Gauzy has a consensus price target of $16.25, suggesting a potential upside of 67.53%. Given ESS Tech’s higher probable upside, equities research analysts clearly believe ESS Tech is more favorable than Gauzy.

Valuation and Earnings

This table compares ESS Tech and Gauzy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$6.24 million	8.87	-$77.58 million	($6.55)	-0.71
Gauzy	$94.35 million	1.96	-$79.27 million	N/A	N/A

ESS Tech has higher earnings, but lower revenue than Gauzy.

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.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.