Analyzing FREYR Battery (NYSE:FREY) & Solid Power (NASDAQ:SLDP)

Solid Power (NASDAQ:SLDP) and FREYR Battery (NYSE:FREY) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

33.7% of Solid Power shares are held by institutional investors. Comparatively, 52.3% of FREYR Battery shares are held by institutional investors. 7.2% of Solid Power shares are held by company insiders. Comparatively, 25.5% of FREYR Battery shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Solid Power has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, FREYR Battery has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Solid Power and FREYR Battery, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	1	2	0	2.25
FREYR Battery	1	3	0	0	1.75

Solid Power currently has a consensus price target of $3.00, suggesting a potential upside of 125.56%. FREYR Battery has a consensus price target of $3.63, suggesting a potential upside of 259.74%. Given FREYR Battery’s higher possible upside, analysts plainly believe FREYR Battery is more favorable than Solid Power.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solid Power	-393.42%	-15.87%	-14.90%
FREYR Battery	N/A	-15.47%	-13.42%

Earnings and Valuation

This table compares Solid Power and FREYR Battery”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$17.41 million	13.67	-$65.55 million	($0.38)	-3.50
FREYR Battery	N/A	N/A	-$71.94 million	($0.62)	-1.63

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

Summary

FREYR Battery beats Solid Power on 7 of the 13 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

About FREYR Battery

FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. The company develops battery cell manufacturing facilities. It serves its products to energy storage systems and commercial mobility, including marine applications and commercial vehicles markets. The company is headquartered in Luxembourg.