Analyzing Energem (NASDAQ:ENCP) and SCI Engineered Materials (OTCMKTS:SCIA)

Energem (NASDAQ:ENCP) and SCI Engineered Materials (OTCMKTS:SCIA) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Risk & Volatility

Energem has a beta of -0.12, suggesting that its share price is 112% less volatile than the S&P 500. Comparatively, SCI Engineered Materials has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Profitability

This table compares Energem and SCI Engineered Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energem	N/A	-3.12%	0.92%
SCI Engineered Materials	7.20%	20.57%	14.33%

Earnings & Valuation

This table compares Energem and SCI Engineered Materials’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energem	N/A	N/A	$50,000.00	$0.06	74.17
SCI Engineered Materials	$27.98 million	0.88	$2.19 million	$0.48	11.25

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Energem and SCI Engineered Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energem	0	0	0	0	N/A
SCI Engineered Materials	0	0	0	0	N/A

Insider & Institutional Ownership

43.0% of Energem shares are owned by institutional investors. Comparatively, 27.6% of SCI Engineered Materials shares are owned by institutional investors. 64.2% of Energem shares are owned by insiders. Comparatively, 19.8% of SCI Engineered 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.

Summary

SCI Engineered Materials beats Energem on 7 of the 10 factors compared between the two stocks.

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.

About SCI Engineered Materials

SCI Engineered Materials, Inc. engages in the manufacture and supply of materials for physical vapor deposition thin film applications in the United States. It offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, thin film solar, flat panel displays, defense, aerospace, and photonics industries. The company's materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. It serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.