Head to Head Contrast: ABB (OTCMKTS:ABBNY) vs. Solid Power (NASDAQ:SLDP)

ABB (OTCMKTS:ABBNY) and Solid Power (NASDAQ:SLDP) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Insider & Institutional Ownership

1.1% of ABB shares are held by institutional investors. Comparatively, 33.7% of Solid Power shares are held by institutional investors. 4.9% of ABB shares are held by insiders. Comparatively, 5.7% of Solid Power shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares ABB and Solid Power”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABB	$33.22 billion	4.64	$4.73 billion	$2.76	30.65
Solid Power	$3.90 million	115.79	-$93.41 million	($0.42)	-4.71

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ABB and Solid Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABB	0	10	1	2	2.38
Solid Power	1	1	3	0	2.40

Solid Power has a consensus price target of $6.92, suggesting a potential upside of 249.33%. Given Solid Power’s stronger consensus rating and higher probable upside, analysts plainly believe Solid Power is more favorable than ABB.

Profitability

This table compares ABB and Solid Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABB	13.55%	31.11%	11.14%
Solid Power	-485.47%	-18.38%	-17.29%

Risk and Volatility

ABB has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Summary

ABB beats Solid Power on 8 of the 15 factors compared between the two stocks.

About ABB

ABB is a global technology company focused on electrification and automation. Its products and services include electrical equipment and systems, industrial motors and drives, automation and control technologies, and robotics for industrial applications. The company serves customers in industries such as manufacturing, energy, transportation and infrastructure, helping them improve productivity, operational efficiency and energy use. ABB operates in markets around the world. ABB was formed in 1988 through the merger of Swedish company ASEA and Switzerland’s Brown, Boveri & Cie.

About Solid Power

Solid Power, Inc. develops solid-state battery technology for electric vehicles and other applications. The company focuses on sulfide-based solid electrolytes and all-solid-state battery cells, which are designed to replace the liquid electrolyte used in conventional lithium-ion batteries. Solid Power’s activities include developing and testing battery materials and cells, as well as supporting automotive partners as they evaluate and manufacture the technology. Its business model emphasizes supplying solid electrolyte and licensing cell designs and production processes, rather than producing batteries at large scale for consumers.