Energem (NASDAQ:ENCP) & Thermon Group (NYSE:THR) Critical Analysis

Thermon Group (NYSE:THR) and Energem (NASDAQ:ENCP) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Thermon Group and Energem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thermon Group	0	0	1	0	3.00
Energem	0	0	0	0	N/A

Thermon Group presently has a consensus target price of $36.00, suggesting a potential upside of 18.34%. Given Thermon Group’s higher possible upside, analysts plainly believe Thermon Group is more favorable than Energem.

Insider and Institutional Ownership

99.8% of Thermon Group shares are held by institutional investors. Comparatively, 43.0% of Energem shares are held by institutional investors. 1.9% of Thermon Group shares are held by insiders. Comparatively, 64.2% of Energem shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Thermon Group and Energem’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thermon Group	$440.59 million	2.33	$33.67 million	$1.44	21.13
Energem	N/A	N/A	$50,000.00	$0.06	169.00

Thermon Group has higher revenue and earnings than Energem. Thermon Group is trading at a lower price-to-earnings ratio than Energem, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Thermon Group has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Energem has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500.

Profitability

This table compares Thermon Group and Energem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thermon Group	10.05%	14.60%	9.27%
Energem	N/A	-3.12%	0.92%

Summary

Thermon Group beats Energem on 10 of the 12 factors compared between the two stocks.

About Thermon Group

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It provides heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services. The company also offers controls, monitoring, and software systems for the control and management of a heat trace system; environmental heating solutions under the Ruffneck, Norsemen, and Catadyne brands; process heating solutions under the Caloritech brand name; filtration solutions under the 3L Filters brand; and rail and transit solutions under the Hellfire, Velocity, ArcticSense, and other brand names. In addition, it provides transportation heating products, including track and switch heaters, accessories, control panels, rail heaters, gas blower accessories, and air curtains; track and switch heater, gas blower accessories; transit heaters; and velocity heat. Further, the company offers temporary power solutions; heating systems, such as engineered electric heat, explosion proof gas catalytic heaters, heaters for harshest environments, methane abatement, and engineered filtration system; electrically, steam, and fluid heated tubing bundles; and pre-insulated tubing and system accessories tubing bundles. The company serves chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, energy transition/decarbonization, mining and mineral processing, maritime/shipbuilding, semiconductors, pharmaceutical and biotechnology, food and beverage, data centers, and renewables industries through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is based in Austin, Texas.

About Energem

Energem Corp. does not have significant operations. The company focuses on effecting a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. It intends to focus a target business operating in the oil and gas and other potential renewable energy business, as well as other adjacent services, including industrials and technologies. The company was incorporated in 2021 and is based in Kuala Lumpur, Malaysia. Energem Corp. operates as a subsidiary of Energem LLC.