Reviewing Electra Battery Materials (NASDAQ:ELBM) & Enovix (NASDAQ:ENVX)

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

Valuation & Earnings

This table compares Enovix and Electra Battery Materials’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enovix	$7.64 million	138.06	-$214.07 million	($1.53)	-4.09
Electra Battery Materials	N/A	N/A	$9.65 million	($0.38)	-1.07

Electra Battery Materials has lower revenue, but higher earnings 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 Enovix and Electra Battery Materials’ net margins, return on equity and return on assets.

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

Insider & Institutional Ownership

50.9% of Enovix shares are owned by institutional investors. Comparatively, 32.9% of Electra Battery Materials shares are owned by institutional investors. 17.3% of Enovix shares are owned by company insiders. Comparatively, 22.7% of Electra Battery Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

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

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

Enovix currently has a consensus target price of $30.00, indicating a potential upside of 379.23%. Electra Battery Materials has a consensus target price of $1.93, indicating a potential upside of 372.16%. Given Enovix’s higher probable upside, equities research analysts clearly believe Enovix is more favorable than Electra Battery Materials.

Risk & Volatility

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

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.