Critical Review: NeoVolta (NASDAQ:NEOV) versus Polar Power (NASDAQ:POLA)

Polar Power (NASDAQ:POLA) and NeoVolta (NASDAQ:NEOV) are both small-cap utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Valuation & Earnings

This table compares Polar Power and NeoVolta’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polar Power	$15.29 million	0.50	-$6.55 million	($0.53)	-1.11
NeoVolta	$3.46 million	24.79	-$2.64 million	($0.06)	-43.00

NeoVolta has lower revenue, but higher earnings than Polar Power. NeoVolta is trading at a lower price-to-earnings ratio than Polar Power, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Polar Power and NeoVolta, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polar Power	0	0	0	0	N/A
NeoVolta	0	0	0	0	N/A

Volatility and Risk

Polar Power has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, NeoVolta has a beta of -2.06, indicating that its share price is 306% less volatile than the S&P 500.

Profitability

This table compares Polar Power and NeoVolta’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polar Power	-58.84%	-54.46%	-28.64%
NeoVolta	-68.01%	-32.41%	-32.25%

Insider & Institutional Ownership

26.1% of Polar Power shares are held by institutional investors. Comparatively, 5.1% of NeoVolta shares are held by institutional investors. 44.1% of Polar Power shares are held by insiders. Comparatively, 15.0% of NeoVolta shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Polar Power beats NeoVolta on 7 of the 11 factors compared between the two stocks.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.