Critical Review: Electra Battery Materials (NASDAQ:ELBM) vs. NOVONIX (OTCMKTS:NVNXF)

NOVONIX (OTCMKTS:NVNXF) and Electra Battery Materials (NASDAQ:ELBM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Profitability

This table compares NOVONIX and Electra Battery Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NOVONIX	N/A	N/A	N/A
Electra Battery Materials	N/A	-39.33%	-19.52%

Risk & Volatility

NOVONIX has a beta of 2.48, meaning that its share price is 148% more volatile than the S&P 500. Comparatively, Electra Battery Materials has a beta of 2.58, meaning that its share price is 158% more volatile than the S&P 500.

Institutional and Insider Ownership

32.9% of Electra Battery Materials shares are held by institutional investors. 6.6% of NOVONIX shares are held by insiders. Comparatively, 22.7% of Electra Battery Materials shares are held 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.

Analyst Ratings

This is a breakdown of current recommendations for NOVONIX and Electra Battery Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NOVONIX	0	0	0	0	0.00
Electra Battery Materials	0	0	1	1	3.50

Electra Battery Materials has a consensus target price of $5.20, indicating a potential upside of 207.69%. Given Electra Battery Materials’ stronger consensus rating and higher probable upside, analysts plainly believe Electra Battery Materials is more favorable than NOVONIX.

Valuation & Earnings

This table compares NOVONIX and Electra Battery Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$8.06 million	19.53	-$46.25 million	N/A	N/A
Electra Battery Materials	N/A	N/A	-$47.90 million	($3.56)	-0.47

NOVONIX has higher revenue and earnings than Electra Battery Materials.

Summary

Electra Battery Materials beats NOVONIX on 7 of the 11 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 Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.