Xenonics (OTCMKTS:XNNHQ) versus ESS Tech (NYSE:GWH) Financial Analysis

Xenonics (OTCMKTS:XNNHQ) and ESS Tech (NYSE:GWH) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Xenonics and ESS Tech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenonics	0	0	0	0	N/A
ESS Tech	0	1	2	0	2.67

ESS Tech has a consensus target price of $3.26, indicating a potential upside of 114.39%. Given ESS Tech’s higher probable upside, analysts clearly believe ESS Tech is more favorable than Xenonics.

Volatility and Risk

Xenonics has a beta of 8.87, suggesting that its share price is 787% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 2.07, suggesting that its share price is 107% more volatile than the S&P 500.

Institutional & Insider Ownership

44.2% of ESS Tech shares are owned by institutional investors. 8.9% of Xenonics shares are owned by insiders. Comparatively, 6.9% of ESS Tech 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.

Earnings and Valuation

This table compares Xenonics and ESS Tech’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenonics	N/A	N/A	N/A	N/A	N/A
ESS Tech	$3.41 million	69.41	-$77.97 million	($0.66)	-2.30

Xenonics has higher earnings, but lower revenue than ESS Tech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xenonics	N/A	N/A	N/A
ESS Tech	-2,979.22%	-76.05%	-60.51%

Summary

Xenonics beats ESS Tech on 5 of the 9 factors compared between the two stocks.

About Xenonics

Xenonics Holdings, Inc. designs, manufactures, and markets portable illumination products and low light viewing systems (night vision) in the United States. It offers NightHunter ONE, a lightweight illumination system, which can be used on vehicles, boats, and helicopters; NightHunter EXT, a lightweight illumination system for mounting on heavy guns and for use on stationary platforms, or vehicles, boats, or helicopters; and NightHunter 3 for handheld use or mounting on light, medium, and heavy machine guns or vehicles. The company also provides SuperVision that allows user to see in the dark with clarity than conventional night vision; SuperVision Video Out to connect the video signal to a computer recording device or monitor for surveillance; SuperVision Tactical Packages for law enforcement professionals; and SuperVision Vehicle Patrol Packages to make law enforcement patrol operations safer. It markets its illumination products under the NightHunter brand and night vision products under the SuperVision brand. The company serves military forces; the U.S. Department of Homeland Security; law enforcement, fire, search, and rescue; and commercial markets. Xenonics Holdings, Inc. was founded in 1996 and is headquartered in Carlsbad, California.

About ESS Tech

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.