Gauzy (NASDAQ:GAUZ) versus Electra Battery Materials (NASDAQ:ELBM) Critical Review

Electra Battery Materials (NASDAQ:ELBM) and Gauzy (NASDAQ:GAUZ) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

32.9% of Electra Battery Materials shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Electra Battery Materials and Gauzy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	0	0	1	1	3.50
Gauzy	0	0	3	1	3.25

Electra Battery Materials presently has a consensus target price of $1.40, suggesting a potential upside of 109.27%. Gauzy has a consensus target price of $21.75, suggesting a potential upside of 123.19%. Given Gauzy’s higher probable upside, analysts clearly believe Gauzy is more favorable than Electra Battery Materials.

Profitability

This table compares Electra Battery Materials and Gauzy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-39.04%	-21.36%
Gauzy	N/A	N/A	N/A

Valuation and Earnings

This table compares Electra Battery Materials and Gauzy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electra Battery Materials	N/A	N/A	-$47.90 million	($0.94)	-0.71
Gauzy	$89.75 million	2.07	-$79.27 million	N/A	N/A

Electra Battery Materials has higher earnings, but lower revenue than Gauzy.

Summary

Gauzy beats Electra Battery Materials on 5 of the 9 factors compared between the two stocks.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.