Comparing Enovix (NASDAQ:ENVX) and Electra Battery Materials (NASDAQ:ELBM)

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

Insider and Institutional Ownership

32.9% of Electra Battery Materials shares are held by institutional investors. Comparatively, 50.9% of Enovix shares are held by institutional investors. 22.7% of Electra Battery Materials shares are held by company insiders. Comparatively, 17.3% of Enovix shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Electra Battery Materials and Enovix, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electra Battery Materials	0	0	2	0	3.00
Enovix	0	1	5	0	2.83

Electra Battery Materials currently has a consensus price target of $1.93, suggesting a potential upside of 372.16%. Enovix has a consensus price target of $30.00, suggesting a potential upside of 379.23%. Given Enovix’s higher possible upside, analysts plainly believe Enovix is more favorable than Electra Battery Materials.

Valuation and Earnings

This table compares Electra Battery Materials and Enovix’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	$9.65 million	($0.38)	-1.07
Enovix	$7.64 million	138.06	-$214.07 million	($1.53)	-4.09

Electra Battery Materials has higher earnings, but lower revenue than Enovix. Enovix is trading at a lower price-to-earnings ratio than Electra Battery Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Electra Battery Materials	N/A	-7.87%	-4.79%
Enovix	-2,800.51%	-77.74%	-41.01%

Risk & Volatility

Electra Battery Materials has a beta of 2.69, meaning that its stock price is 169% more volatile than the S&P 500. Comparatively, Enovix has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500.

Summary

Electra Battery Materials beats Enovix on 9 of the 13 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 Enovix

Enovix Corporation designs, develops, and manufactures lithium-ion batteries. It serves wearables and IoT, smartphone, laptops and tablets, industrial and medical, and electric vehicles industries. The company was founded in 2007 and is headquartered in Fremont, California.