Electrovaya (NASDAQ:ELVA) & One Stop Systems (NASDAQ:OSS) Critical Comparison

Electrovaya (NASDAQ:ELVA) and One Stop Systems (NASDAQ:OSS) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Electrovaya and One Stop Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Electrovaya	0	2	3	1	2.83
One Stop Systems	0	2	3	0	2.60

Electrovaya presently has a consensus price target of $14.63, suggesting a potential upside of 53.95%. One Stop Systems has a consensus price target of $16.00, suggesting a potential downside of 3.90%. Given Electrovaya’s stronger consensus rating and higher possible upside, research analysts plainly believe Electrovaya is more favorable than One Stop Systems.

Valuation and Earnings

This table compares Electrovaya and One Stop Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Electrovaya	$70.99 million	6.63	$3.36 million	$0.12	79.17
One Stop Systems	$35.08 million	11.74	$5.09 million	$0.25	66.60

One Stop Systems has lower revenue, but higher earnings than Electrovaya. One Stop Systems is trading at a lower price-to-earnings ratio than Electrovaya, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Electrovaya and One Stop Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Electrovaya	7.03%	11.35%	6.19%
One Stop Systems	12.44%	-0.24%	-0.18%

Volatility and Risk

Electrovaya has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, One Stop Systems has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

22.5% of Electrovaya shares are held by institutional investors. Comparatively, 32.7% of One Stop Systems shares are held by institutional investors. 3.9% of One Stop Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Electrovaya beats One Stop Systems on 8 of the 14 factors compared between the two stocks.

About Electrovaya

Electrovaya Inc. engages in the design, development, manufacture, and sale of lithium-ion batteries, battery management systems, and battery-related products for energy storage, clean electric transportation, and other specialized applications in North America. It offers lithium-ion batteries and systems for materials handling electric vehicles, including forklifts and automated guided vehicles, as well as battery chargers to charge the batteries; electromotive power products for electric trucks, electric buses, and other transportation applications; industrial products for energy storage; and power solutions, such as competencies in building systems for third parties. The company was formerly known as Electrofuel Inc. and changed its name to Electrovaya Inc. in March 2002. Electrovaya Inc. was incorporated in 1996 and is headquartered in Mississauga, Canada.

About One Stop Systems

One Stop Systems, Inc. engages in the design, manufacture, and marketing of high-performance compute, high speed storage hardware and software, switch fabrics, and systems for edge deployments in the United States and internationally. The company's systems are built using the central processing unit, graphical processing unit, high-speed switch fabrics, and flash storage technologies. It provides custom servers, data acquisition platforms, compute accelerators, solid-state storage arrays, and system I/O expansion systems, as well as edge optimized industrial and panel PCs, tablets, and handheld compute devices. The company also offers ruggedized mobile tablets and handhelds that meet the specialized requirement for devices deployed at the edge in a diverse set of environmental conditions. It sells its products to multinational companies, governmental agencies, military contractors, military services, and technology providers through its website, web store, direct sales team, and original equipment manufacturer focused sales, as well as through a network of resellers and distributors. The company was founded in 1998 and is headquartered in Escondido, California.