GrafTech International (NYSE:EAF – Get Free Report) and ESS Tech (NYSE:GWH – Get Free Report) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Valuation and Earnings
This table compares GrafTech International and ESS Tech”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| GrafTech International | $504.13 million | 0.42 | -$219.84 million | ($6.80) | -1.19 |
| ESS Tech | $1.58 million | 11.96 | -$63.44 million | ($3.37) | -0.19 |
Profitability
This table compares GrafTech International and ESS Tech’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| GrafTech International | -34.58% | N/A | -17.50% |
| ESS Tech | N/A | -1,251.69% | -139.79% |
Risk & Volatility
GrafTech International has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.
Institutional and Insider Ownership
92.8% of GrafTech International shares are owned by institutional investors. Comparatively, 46.8% of ESS Tech shares are owned by institutional investors. 1.2% of GrafTech International shares are owned by company insiders. Comparatively, 1.4% of ESS Tech shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for GrafTech International and ESS Tech, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| GrafTech International | 3 | 3 | 0 | 0 | 1.50 |
| ESS Tech | 1 | 1 | 1 | 0 | 2.00 |
GrafTech International presently has a consensus target price of $10.67, suggesting a potential upside of 31.64%. ESS Tech has a consensus target price of $2.00, suggesting a potential upside of 211.04%. Given ESS Tech’s stronger consensus rating and higher probable upside, analysts clearly believe ESS Tech is more favorable than GrafTech International.
Summary
ESS Tech beats GrafTech International on 9 of the 14 factors compared between the two stocks.
About GrafTech International
GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.
About ESS Tech
ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.
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