Critical Comparison: Energous (NASDAQ:WATT) & ESCO Technologies (NYSE:ESE)

ESCO Technologies (NYSE:ESE) and Energous (NASDAQ:WATT) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Insider & Institutional Ownership

95.7% of ESCO Technologies shares are owned by institutional investors. Comparatively, 4.4% of Energous shares are owned by institutional investors. 0.7% of ESCO Technologies shares are owned by company insiders. Comparatively, 0.1% of Energous shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares ESCO Technologies and Energous’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESCO Technologies	11.01%	10.56%	7.20%
Energous	-1,448.42%	-489.87%	-205.29%

Earnings & Valuation

This table compares ESCO Technologies and Energous”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESCO Technologies	$1.03 billion	4.93	$101.88 million	$4.56	43.01
Energous	$770,000.00	12.19	-$18.40 million	($1.63)	-0.17

ESCO Technologies has higher revenue and earnings than Energous. Energous is trading at a lower price-to-earnings ratio than ESCO Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ESCO Technologies has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Energous has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for ESCO Technologies and Energous, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESCO Technologies	0	0	2	0	3.00
Energous	0	0	0	0	0.00

ESCO Technologies presently has a consensus price target of $187.50, suggesting a potential downside of 4.39%. Given ESCO Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe ESCO Technologies is more favorable than Energous.

Summary

ESCO Technologies beats Energous on 13 of the 14 factors compared between the two stocks.

About ESCO Technologies

ESCO Technologies Inc. produces and supplies engineered products and systems for industrial and commercial markets worldwide. It operates through three segments: Aerospace & Defense, Utility Solutions Group, and RF Test & Measurement. The Aerospace & Defense segment designs and manufactures filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; filter mechanisms used in micro-propulsion devices for satellites; and custom designed filters for manned aircraft and submarines. It also designs, develops, and manufactures elastomeric-based signature reduction solutions for U.S. naval vessels; and mission-critical bushings, pins, sleeves, and precision-tolerance machined components for landing gear, rotor heads, engine mounts, flight controls, and actuation systems for the aerospace and defense industries. The Utility Solutions Group segment provides diagnostic testing solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment; and decision support tools for the renewable energy industry, primarily wind and solar. The RF Test & Measurement segment designs and manufactures RF test and secure communication facilities, acoustic test enclosures, RF and magnetically shielded rooms, RF measurement systems, and broadcast and recording studios; and RF absorptive materials, filters, antennas, field probes, test cells, proprietary measurement software, and other test accessories to perform various tests. The company distributes its products through a network of distributors, sales representatives, direct sales teams, and in-house sales personnel. The company was incorporated in 1990 and is based in Saint Louis, Missouri.

About Energous

Energous Corporation provides wireless charging system solutions in the United States. The company develops WattUp wireless power networks technology that consists of semiconductor chipsets; software controls; hardware designs; and antennas that enables radio frequency-based charging for Internet of Things devices. Its products are used in asset trackers; sensors; retail displays; and security devices; smart home; medical; industrial; and other sensors; electronic shelf labeling; logistics and asset tracking tags and sensors; computer mice and keyboards; remote controls; gaming consoles and controllers; hearing aids; rechargeable batteries; automotive accessories; smart textiles; wearables; and medical devices. The company was formerly known as DvineWave Inc. and changed its name to Energous Corporation in January 2014. Energous Corporation was incorporated in 2012 and is headquartered in San Jose; California.