Comparing Electrovaya (NASDAQ:ELVA) & Electra Battery Materials (NASDAQ:ELBM)

Electra Battery Materials (NASDAQ:ELBM) and Electrovaya (NASDAQ:ELVA) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-39.33%	-19.52%
Electrovaya	-3.88%	-15.42%	-4.24%

Volatility & Risk

Electra Battery Materials has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500. Comparatively, Electrovaya has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Electra Battery Materials and Electrovaya, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	0	0	1	1	3.50
Electrovaya	0	0	4	1	3.20

Electra Battery Materials presently has a consensus target price of $2.40, suggesting a potential upside of 108.70%. Electrovaya has a consensus target price of $6.10, suggesting a potential upside of 148.98%. Given Electrovaya’s higher probable upside, analysts plainly believe Electrovaya is more favorable than Electra Battery Materials.

Institutional and Insider Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. Comparatively, 22.5% of Electrovaya shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Electra Battery Materials and Electrovaya”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electra Battery Materials	N/A	N/A	-$47.90 million	($3.56)	-0.32
Electrovaya	$43.67 million	2.25	-$1.49 million	($0.04)	-61.25

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

Summary

Electrovaya beats Electra Battery Materials on 7 of the 13 factors compared between the two stocks.

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.

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.