Head to Head Comparison: Polar Power (NASDAQ:POLA) vs. NOVONIX (NASDAQ:NVX)

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

Analyst Ratings

This is a breakdown of current recommendations 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 currently has a consensus target price of $4.00, indicating a potential upside of 112.77%. Given NOVONIX’s stronger consensus rating and higher probable upside, research analysts plainly believe NOVONIX is more favorable than Polar Power.

Insider and Institutional Ownership

0.1% of NOVONIX shares are held by institutional investors. Comparatively, 26.1% of Polar Power shares are held by institutional investors. 23.7% of NOVONIX shares are held by insiders. Comparatively, 32.5% of Polar Power shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

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%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NOVONIX	$8.06 million	28.79	-$46.25 million	N/A	N/A
Polar Power	$15.29 million	0.61	-$6.55 million	($0.47)	-1.13

Polar Power has higher revenue and earnings than NOVONIX.

Volatility & Risk

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

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.