Critical Analysis: Erayak Power Solution Group (NASDAQ:RAYA) & XT Energy Group (OTCMKTS:XTNY)

XT Energy Group (OTCMKTS:XTNY) and Erayak Power Solution Group (NASDAQ:RAYA) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for XT Energy Group and Erayak Power Solution Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XT Energy Group	0	0	0	0	N/A
Erayak Power Solution Group	0	0	0	0	N/A

Insider & Institutional Ownership

0.3% of Erayak Power Solution Group shares are owned by institutional investors. 62.0% of XT Energy Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

XT Energy Group has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Erayak Power Solution Group has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500.

Profitability

This table compares XT Energy Group and Erayak Power Solution Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XT Energy Group	2.48%	12.50%	2.19%
Erayak Power Solution Group	N/A	N/A	N/A

Earnings & Valuation

This table compares XT Energy Group and Erayak Power Solution Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XT Energy Group	$15.27 million	0.00	-$1.36 million	N/A	N/A
Erayak Power Solution Group	$20.32 million	0.39	$3.48 million	N/A	N/A

Erayak Power Solution Group has higher revenue and earnings than XT Energy Group.

About XT Energy Group

XT Energy Group, Inc. engages in the production of electricity generation systems that combine the compressed air storage technology with photovoltaic panels of the company. It also utilizes proprietary compressed air energy storage power generation technology that can store energy for other alternative energy sources such as using solar, wind, geothermal, and tidal as raw power to regenerate electricity power without the use of fossil fuels or other chemical methods. The company was founded by Deng Rong Zhou on September 2, 2008 and is headquartered in Xianning, China.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.