Head to Head Analysis: Electrovaya (NASDAQ:ELVA) versus Microvast (NASDAQ:MVST)

Microvast (NASDAQ:MVST) and Electrovaya (NASDAQ:ELVA) are both small-cap business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Microvast and Electrovaya, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microvast	0	1	3	0	2.75
Electrovaya	0	0	4	0	3.00

Microvast currently has a consensus target price of $4.50, suggesting a potential upside of 800.36%. Electrovaya has a consensus target price of $11.33, suggesting a potential upside of 279.04%. Given Microvast’s higher possible upside, equities research analysts clearly believe Microvast is more favorable than Electrovaya.

Institutional & Insider Ownership

20.7% of Microvast shares are held by institutional investors. Comparatively, 22.5% of Electrovaya shares are held by institutional investors. 31.3% of Microvast shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Microvast and Electrovaya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microvast	-34.68%	-18.37%	-10.34%
Electrovaya	1.79%	12.44%	2.40%

Valuation & Earnings

This table compares Microvast and Electrovaya’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microvast	$306.62 million	0.52	-$106.34 million	($0.34)	-1.47
Electrovaya	$44.06 million	2.30	-$1.48 million	$0.02	149.57

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

Summary

Electrovaya beats Microvast on 10 of the 13 factors compared between the two stocks.

About Microvast

Microvast Holdings, Inc. provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port vehicles, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks. It operates China, rest of the Asia Pacific, Europe, and the United States. Microvast Holdings, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.

About Electrovaya

Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as competencies in building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.