Financial Contrast: GrafTech International (NYSE:EAF) versus Energem (NASDAQ:ENCP)

GrafTech International (NYSE:EAF) and Energem (NASDAQ:ENCP) are both small-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

GrafTech International has a beta of 1.16, indicating that its stock price is 16% 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.

Profitability

This table compares GrafTech International and Energem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrafTech International	-41.14%	-39.57%	-6.89%
Energem	N/A	-3.12%	0.92%

Institutional and Insider Ownership

92.8% of GrafTech International shares are held by institutional investors. Comparatively, 43.0% of Energem shares are held by institutional investors. 0.6% of GrafTech International shares are held by company insiders. Comparatively, 64.2% of Energem shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for GrafTech International and Energem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrafTech International	0	5	0	0	2.00
Energem	0	0	0	0	N/A

GrafTech International currently has a consensus price target of $1.88, suggesting a potential upside of 35.87%. Given GrafTech International’s higher probable upside, analysts plainly believe GrafTech International is more favorable than Energem.

Valuation and Earnings

This table compares GrafTech International and Energem’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrafTech International	$620.50 million	0.57	-$255.25 million	($1.00)	-1.38
Energem	N/A	N/A	$50,000.00	$0.06	117.83

Energem has lower revenue, but higher earnings than GrafTech International. GrafTech International is trading at a lower price-to-earnings ratio than Energem, indicating that it is currently the more affordable of the two stocks.

Summary

Energem beats GrafTech International on 7 of the 11 factors compared between the two stocks.

About GrafTech International

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

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.