Head-To-Head Review: Enovix (NASDAQ:ENVX) versus Electrovaya (NASDAQ:ELVA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electrovaya	-1.34%	-8.02%	-1.63%
Enovix	-1,180.21%	-102.19%	-42.53%

Insider & Institutional Ownership

22.5% of Electrovaya shares are held by institutional investors. Comparatively, 50.9% of Enovix shares are held by institutional investors. 15.7% of Enovix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Electrovaya and Enovix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electrovaya	$49.41 million	1.63	-$1.48 million	($0.01)	-238.00
Enovix	$7.64 million	199.41	-$214.07 million	($1.61)	-5.32

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

Analyst Ratings

This is a breakdown of recent recommendations for Electrovaya and Enovix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electrovaya	0	0	5	0	3.00
Enovix	0	2	8	1	2.91

Electrovaya currently has a consensus price target of $8.75, indicating a potential upside of 267.65%. Enovix has a consensus price target of $20.50, indicating a potential upside of 139.49%. Given Electrovaya’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Electrovaya is more favorable than Enovix.

Risk & Volatility

Electrovaya has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Enovix has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.

Summary

Electrovaya beats Enovix on 8 of the 15 factors compared between the two stocks.

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.

About Enovix

Enovix Corporation designs, develops, and manufactures lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.