Financial Analysis: FREYR Battery (NYSE:FREY) & Solid Power (NASDAQ:SLDP)

FREYR Battery (NYSE:FREY) and Solid Power (NASDAQ:SLDP) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

This table compares FREYR Battery and Solid Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FREYR Battery	N/A	-15.47%	-13.42%
Solid Power	-393.42%	-15.87%	-14.90%

Volatility and Risk

FREYR Battery has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.

Valuation & Earnings

This table compares FREYR Battery and Solid Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FREYR Battery	N/A	N/A	-$71.94 million	($0.62)	-1.63
Solid Power	$17.41 million	13.67	-$65.55 million	($0.38)	-3.50

Solid Power has higher revenue and earnings than FREYR Battery. Solid Power is trading at a lower price-to-earnings ratio than FREYR Battery, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

52.3% of FREYR Battery shares are held by institutional investors. Comparatively, 33.7% of Solid Power shares are held by institutional investors. 25.5% of FREYR Battery shares are held by insiders. Comparatively, 7.2% of Solid Power shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for FREYR Battery and Solid Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FREYR Battery	1	3	0	0	1.75
Solid Power	1	1	2	0	2.25

FREYR Battery currently has a consensus target price of $3.63, indicating a potential upside of 259.74%. Solid Power has a consensus target price of $3.00, indicating a potential upside of 125.56%. Given FREYR Battery’s higher probable upside, analysts plainly believe FREYR Battery is more favorable than Solid Power.

Summary

FREYR Battery beats Solid Power on 7 of the 13 factors compared between the two stocks.

About FREYR Battery

FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. The company develops battery cell manufacturing facilities. It serves its products to energy storage systems and commercial mobility, including marine applications and commercial vehicles markets. The company is headquartered in Luxembourg.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.