Analyzing Advantage Energy (OTCMKTS:AAVVF) and Energy Vault (NYSE:NRGV)

Energy Vault (NYSE:NRGV) and Advantage Energy (OTCMKTS:AAVVF) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Energy Vault and Advantage Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Energy Vault	2	1	3	0	2.17
Advantage Energy	0	4	2	0	2.33

Energy Vault currently has a consensus price target of $2.67, indicating a potential downside of 36.37%. Given Energy Vault’s higher possible upside, equities analysts plainly believe Energy Vault is more favorable than Advantage Energy.

Valuation and Earnings

This table compares Energy Vault and Advantage Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Energy Vault	$46.20 million	15.25	-$135.75 million	($0.95)	-4.42
Advantage Energy	$396.54 million	3.41	$15.85 million	$0.25	32.36

Advantage Energy has higher revenue and earnings than Energy Vault. Energy Vault is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Energy Vault and Advantage Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Energy Vault	-172.61%	-119.98%	-53.04%
Advantage Energy	9.39%	3.75%	2.06%

Volatility and Risk

Energy Vault has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Advantage Energy has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500.

Insider & Institutional Ownership

40.0% of Energy Vault shares are owned by institutional investors. Comparatively, 7.9% of Advantage Energy shares are owned by institutional investors. 19.8% of Energy Vault shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Advantage Energy beats Energy Vault on 9 of the 14 factors compared between the two stocks.

About Energy Vault

Energy Vault Holdings, Inc. develops and sells energy storage solutions. The company offers B-Vault, an electrochemical battery energy storage systems for shorter-duration energy storage needs; G-Vault, a proprietary gravity energy storage solution, including EVx solution; and H-Vault, a hybrid energy storage systems including systems that integrate green hydrogen. Its software solutions includes Vault-OS, an energy management system the management of one or more diverse storage mediums; Vault-Bidder that utilizes machine learning algorithms to match node-specific data with real-time weather and asset performance information; and Vault-Manager which designs to safeguard asset management and to help blend developing technologies seamlessly into existing solutions. Energy Vault Holdings, Inc. is based in Westlake Village, California.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.