Critical Analysis: ITM Power (OTCMKTS:ITMPF) versus Energem (NASDAQ:ENCP)

ITM Power (OTCMKTS:ITMPF) and Energem (NASDAQ:ENCP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Insider & Institutional Ownership

43.0% of Energem shares are held by institutional investors. 64.2% of Energem shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for ITM Power and Energem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ITM Power	1	1	0	0	1.50
Energem	0	0	0	0	N/A

ITM Power presently has a consensus price target of $251.75, indicating a potential upside of 37,530.79%. Given ITM Power’s higher probable upside, research analysts clearly believe ITM Power is more favorable than Energem.

Earnings & Valuation

This table compares ITM Power and Energem’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ITM Power	$6.28 million	65.67	-$121.60 million	N/A	N/A
Energem	N/A	N/A	$50,000.00	$0.06	116.67

Energem has lower revenue, but higher earnings than ITM Power.

Profitability

This table compares ITM Power and Energem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ITM Power	N/A	N/A	N/A
Energem	N/A	-3.12%	0.92%

Risk and Volatility

ITM Power has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500. Comparatively, Energem has a beta of -0.12, indicating that its stock price is 112% less volatile than the S&P 500.

About ITM Power

ITM Power Plc designs and manufactures proton exchange membrane (PEM) electrolysers in the United Kingdom, Germany, Australia, rest of Europe, and the United States. Its product portfolio includes TRIDENT, an PEM electrolysers stack technology; NEPTUNE, a 2MW plug and play electrolyser for small to mid-size projects; and POSEIDON, a cutting-edge 20 MW module for large-scale projects. ITM Power Plc was founded in 2001 and is headquartered in Sheffield, the United Kingdom.

About Energem

Energem Corp. does not have significant operations. The company focuses on effecting a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses or entities. It intends to focus a target business operating in the oil and gas and other potential renewable energy business, as well as other adjacent services, including industrials and technologies. The company was incorporated in 2021 and is based in Kuala Lumpur, Malaysia. Energem Corp. operates as a subsidiary of Energem LLC.