Polar Power (NASDAQ: POLA) and Aerohive Networks (NYSE:HIVE) are both small-cap utilities companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitabiliy and analyst recommendations.

Institutional and Insider Ownership

12.6% of Polar Power shares are owned by institutional investors. Comparatively, 53.8% of Aerohive Networks shares are owned by institutional investors. 26.2% of Aerohive Networks shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Polar Power and Aerohive Networks’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Polar Power $24.38 million 1.99 $7.64 million N/A N/A
Aerohive Networks $160.72 million 0.90 -$23.73 million ($0.57) -5.82

Polar Power has higher revenue, but lower earnings than Aerohive Networks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Polar Power and Aerohive Networks, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polar Power 0 0 1 0 3.00
Aerohive Networks 0 3 3 0 2.50

Polar Power presently has a consensus price target of $7.00, indicating a potential upside of 46.44%. Aerohive Networks has a consensus price target of $6.05, indicating a potential upside of 82.17%. Given Aerohive Networks’ higher possible upside, analysts plainly believe Aerohive Networks is more favorable than Polar Power.

Profitability

This table compares Polar Power and Aerohive Networks’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polar Power N/A N/A N/A
Aerohive Networks -18.58% -107.93% -21.00%

Summary

Polar Power beats Aerohive Networks on 6 of the 11 factors compared between the two stocks.

About Polar Power

Polar Power, Inc. is engaged in designing, manufacturing and selling direct current (DC) power systems for applications primarily in the telecommunications, military, electric vehicle charging, cogeneration, distributed power and uninterruptable power supply markets. Within the telecommunications market, the Company’s DC power systems provide DC power to service applications that do not have access to the utility grid (such as off-grid applications) or have critical power needs and cannot be without power in the event of utility grid failure (such as back-up power applications). Its product offerings include DC base power systems, DC hybrid power systems and DC solar hybrid power systems. The Company’s technologies include Permanent Magnet Homopolar Hybrid (PMHH) Technology and Supra Controller Technology. Its power and control system architecture is controlled by its digital control system, Supra Controller, which contains software configured to meet specific application needs.

About Aerohive Networks

Aerohive Networks, Inc. together with its subsidiaries, has designed and developed a cloud-managed mobile networking platform that enables enterprises to deploy and manage a mobile-centric network edge. Its portfolio of products and solutions is built around sets of technologies and solutions, which include Enterprise Cloud Networking, Wireless Fidelity (Wi-Fi) Connectivity and Application and Insights. It conducts its business in geographic regions, including Americas; Europe, the Middle East and Africa, and Asia Pacific. Its product portfolio includes hardware products, cloud-based network management and applications, and support services. Its hardware products include access points, branch routers and access switches. Its hardware products are developed by its hardware design team working in conjunction with original design manufacturer partners, and leverage the commercially available Wi-Fi radios, network processors, crypto accelerators and switching chips.

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