Reviewing NeoVolta (NASDAQ:NEOV) & Polar Power (NASDAQ:POLA)

NeoVolta (NASDAQ:NEOV) and Polar Power (NASDAQ:POLA) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Profitability

This table compares NeoVolta and Polar Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoVolta	-68.01%	-32.41%	-32.25%
Polar Power	-58.84%	-54.46%	-28.64%

Insider & Institutional Ownership

5.1% of NeoVolta shares are held by institutional investors. Comparatively, 26.1% of Polar Power shares are held by institutional investors. 15.0% of NeoVolta shares are held by company insiders. Comparatively, 44.1% of Polar Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

NeoVolta has a beta of -2.06, meaning that its stock price is 306% less volatile than the S&P 500. Comparatively, Polar Power has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares NeoVolta and Polar Power’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoVolta	$3.46 million	23.83	-$2.64 million	($0.06)	-41.33
Polar Power	$12.88 million	0.47	-$6.55 million	($0.53)	-0.89

NeoVolta has higher earnings, but lower revenue than Polar Power. NeoVolta is trading at a lower price-to-earnings ratio than Polar Power, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for NeoVolta and Polar Power, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoVolta	0	0	0	0	N/A
Polar Power	0	0	0	0	N/A

Summary

Polar Power beats NeoVolta on 7 of the 11 factors compared between the two stocks.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.

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.