Financial Analysis: EnerSys (NYSE:ENS) versus ESS Tech (NYSE:GWH)

ESS Tech (NYSE:GWHGet Rating) and EnerSys (NYSE:ENSGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ESS Tech and EnerSys, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ESS Tech 0 1 6 0 2.86
EnerSys 0 0 1 0 3.00

ESS Tech presently has a consensus price target of $17.57, suggesting a potential upside of 429.26%. EnerSys has a consensus price target of $80.00, suggesting a potential upside of 35.27%. Given ESS Tech’s higher probable upside, equities research analysts clearly believe ESS Tech is more favorable than EnerSys.

Profitability

This table compares ESS Tech and EnerSys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ESS Tech N/A -83.39% -29.32%
EnerSys 4.29% 12.44% 5.34%

Valuation and Earnings

This table compares ESS Tech and EnerSys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ESS Tech N/A N/A -$477.12 million N/A N/A
EnerSys $3.36 billion 0.72 $143.91 million $3.35 17.65

EnerSys has higher revenue and earnings than ESS Tech.

Institutional and Insider Ownership

44.1% of ESS Tech shares are held by institutional investors. Comparatively, 97.0% of EnerSys shares are held by institutional investors. 6.8% of ESS Tech shares are held by insiders. Comparatively, 1.4% of EnerSys shares are held by 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 & Volatility

ESS Tech has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, EnerSys has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Summary

EnerSys beats ESS Tech on 7 of the 11 factors compared between the two stocks.

ESS Tech Company Profile (Get Rating)

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

EnerSys Company Profile (Get Rating)

EnerSys provides various stored energy solutions for industrial applications worldwide. It operates in three segments: Energy Systems, Motive Power, and Specialty. The company offers uninterruptible power systems applications for computer and computer-controlled systems, as well as telecommunications systems; switchgear and electrical control systems used in industrial facilities and electric utilities, large-scale energy storage, and energy pipelines; integrated power solutions and services to broadband, telecom, renewable, and industrial customers; and thermally managed cabinets and enclosures for electronic equipment and batteries. It also provides motive power products that are used to provide power for electric industrial forklifts used in manufacturing, warehousing, and other material handling applications. In addition, the company offers mining equipment, diesel locomotive starting, and other rail equipment. Further, it provides specialty batteries for starting, lighting, and ignition applications in transportation; and energy solutions for satellites, military aircraft, submarines, ships, and other tactical vehicles, as well as medical and security systems. Additionally, the company offers battery chargers, power equipment, battery accessories, and outdoor cabinet enclosures, as well as related after-market and customer-support services for industrial batteries. The company sells its products through a network of distributors, independent representatives, and internal sales forces. The company was formerly known as Yuasa, Inc. and changed its name to EnerSys in January 2001. EnerSys was incorporated in 2000 and is headquartered in Reading, Pennsylvania.

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