Head to Head Review: Enovix (NASDAQ:ENVX) and Electra Battery Materials (NASDAQ:ELBM)

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

Insider and Institutional Ownership

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

Earnings & Valuation

This table compares Electra Battery Materials and Enovix’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electra Battery Materials	N/A	N/A	$9.65 million	($0.38)	-1.07
Enovix	$7.64 million	146.15	-$214.07 million	($1.53)	-4.33

Electra Battery Materials has higher earnings, but lower revenue 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.

Volatility and Risk

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

Profitability

This table compares Electra Battery Materials and Enovix’s net margins, return on equity and return on assets.

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

Analyst Ratings

This is a summary of current ratings and target prices for Electra Battery Materials and Enovix, as reported by MarketBeat.com.

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

Electra Battery Materials presently has a consensus price target of $1.93, indicating a potential upside of 375.66%. Enovix has a consensus price target of $28.29, indicating a potential upside of 326.63%. Given Electra Battery Materials’ stronger consensus rating and higher probable upside, research analysts clearly believe Electra Battery Materials is more favorable than Enovix.

Summary

Electra Battery Materials beats Enovix on 10 of the 13 factors compared between the two stocks.

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.

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.