Critical Analysis: Romeo Power (NYSE:RMO) vs. Polar Power (NASDAQ:POLA)

Romeo Power (NYSE:RMO) and Polar Power (NASDAQ:POLA) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, valuation and dividends.

Valuation & Earnings

This table compares Romeo Power and Polar Power’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Romeo Power N/A N/A $2.09 million N/A N/A
Polar Power $24.80 million 5.96 -$4.05 million N/A N/A

Romeo Power has higher earnings, but lower revenue than Polar Power.

Volatility and Risk

Romeo Power has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Polar Power has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Romeo Power and Polar Power, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Romeo Power 1 1 2 0 2.25
Polar Power 0 0 0 0 N/A

Romeo Power presently has a consensus target price of $15.43, suggesting a potential upside of 47.61%. Given Romeo Power’s higher probable upside, equities research analysts plainly believe Romeo Power is more favorable than Polar Power.

Insider & Institutional Ownership

72.1% of Romeo Power shares are held by institutional investors. Comparatively, 12.0% of Polar Power shares are held by institutional investors. 49.9% of Polar Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Romeo Power and Polar Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Romeo Power N/A 7.50% 0.16%
Polar Power -162.27% -71.09% -52.70%

Summary

Romeo Power beats Polar Power on 8 of the 10 factors compared between the two stocks.

Romeo Power Company Profile

Romeo Power, Inc., an energy storage technology company, designs and manufactures lithium-ion battery modules and packs for commercial electric vehicles in North America. The company operates through two segments, Romeo Power North America and Joint Venture Support. It also offers battery management systems; and design, research and development, and other engineering related services. Romeo Power, Inc. was founded in 2014 and is headquartered in Vernon, California.

Polar Power Company Profile

Polar Power, Inc. designs, manufactures, and sells direct current (DC), power generators, renewable energy, and cooling systems in the United States and internationally. It offers DC base power systems, DC hybrid power systems, and DC solar hybrid power systems. The company serves telecommunications, military, electric vehicle charging, cogeneration, distributed power, and uninterruptable power supply markets It sells its products through direct sales force, and a network of independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was founded in 1979 and is based in Gardena, California.

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