Analyzing NOVONIX (NASDAQ:NVX) and Vertiv (NYSE:VRT)

Vertiv (NYSE:VRT) and NOVONIX (NASDAQ:NVX) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

89.9% of Vertiv shares are held by institutional investors. Comparatively, 0.1% of NOVONIX shares are held by institutional investors. 1.1% of Vertiv shares are held by company insiders. Comparatively, 23.7% of NOVONIX shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Vertiv and NOVONIX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vertiv	$10.23 billion	10.24	$1.33 billion	$4.42	61.70
NOVONIX	$5.62 million	18.06	-$92.72 million	N/A	N/A

Vertiv has higher revenue and earnings than NOVONIX.

Analyst Recommendations

This is a summary of current ratings and price targets for Vertiv and NOVONIX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vertiv	0	3	23	3	3.00
NOVONIX	1	0	0	0	1.00

Vertiv currently has a consensus price target of $348.54, indicating a potential upside of 27.81%. Given Vertiv’s stronger consensus rating and higher possible upside, analysts clearly believe Vertiv is more favorable than NOVONIX.

Profitability

This table compares Vertiv and NOVONIX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vertiv	15.09%	50.47%	15.87%
NOVONIX	N/A	N/A	N/A

Volatility & Risk

Vertiv has a beta of 2.06, meaning that its stock price is 106% more volatile than the S&P 500. Comparatively, NOVONIX has a beta of 2.56, meaning that its stock price is 156% more volatile than the S&P 500.

Summary

Vertiv beats NOVONIX on 10 of the 13 factors compared between the two stocks.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming. The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services. It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail industries through a network of direct sales professionals, independent sales representatives, channel partners, and original equipment manufacturers. Vertiv Holdings Co is headquartered in Westerville, Ohio.

About NOVONIX

NOVONIX Limited provides battery materials and development technology for battery manufacturers, materials companies, automotive original equipment manufacturers (OEMs), and consumer electronics manufacturers in North America, Asia, Australia, and Europe. It operates through Battery Materials and Battery Technology segments. The Battery Materials segment develops and manufactures battery anode materials. The Battery Technology segment develops battery cell testing equipment, performs consulting services, and carries out research and development in battery development. The company is involved in the investment and real estate borrowing activities; and offers battery technology, battery testing hardware equipment, and battery testing and development consulting services. The company was formerly known as Graphitecorp Limited and changed its name to NOVONIX Limited in July 2017. NOVONIX Limited was incorporated in 2012 and is based in Brisbane, Australia.