Critical Contrast: Dragonfly Energy (NASDAQ:DFLI) & ABB (OTCMKTS:ABBNY)

ABB (OTCMKTS:ABBNY) and Dragonfly Energy (NASDAQ:DFLI) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Risk & Volatility

ABB has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Dragonfly Energy has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500.

Earnings and Valuation

This table compares ABB and Dragonfly Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABB	$33.22 billion	5.36	$4.73 billion	$2.77	35.27
Dragonfly Energy	$58.63 million	0.23	-$69.94 million	($17.99)	-0.05

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

Profitability

This table compares ABB and Dragonfly Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ABB	13.86%	31.25%	11.17%
Dragonfly Energy	-129.35%	N/A	-46.06%

Insider & Institutional Ownership

1.1% of ABB shares are owned by institutional investors. Comparatively, 8.2% of Dragonfly Energy shares are owned by institutional investors. 4.9% of ABB shares are owned by insiders. Comparatively, 3.1% of Dragonfly Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ABB and Dragonfly Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABB	1	11	1	1	2.14
Dragonfly Energy	1	1	1	1	2.50

ABB currently has a consensus price target of $58.00, indicating a potential downside of 40.63%. Dragonfly Energy has a consensus price target of $3.12, indicating a potential upside of 240.97%. Given Dragonfly Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Dragonfly Energy is more favorable than ABB.

Summary

ABB beats Dragonfly Energy on 10 of the 13 factors compared between the two stocks.

About ABB

ABB Ltd provides electrification, motion, and automation solutions and products for customers in utilities, industry and transport, and infrastructure in Switzerland, rest of Europe, the Americas, the United States, rest of Asia, the Middle East, Africa, China, and internationally. Its Electrification segment offers renewable power solutions, modular substation packages, distribution automation products, switchboards and panelboards, switchgears, UPS solutions, circuit breakers, measuring and sensing devices, control products, wiring accessories, enclosures and cabling systems, and intelligent home and building solutions. The company's Motion segment designs, manufactures, and sells drives, motors, generators, and traction converters that are driving the low-carbon future for industries, cities, infrastructure, and transportation. The company's Process Automation segment provides control technologies, industrial software, advanced analytics, sensing and measurement technology, and marine propulsion systems; and repair, remote monitoring, preventive maintenance, asset performance management, emission monitoring, and cybersecurity services. The company's Robotics & Discrete Automation segment offers industrial and collaborative robots, autonomous mobile robotics, mapping and navigation solutions, robotic solutions, field services, spare parts, and digital services. This segment also provides solutions based on its programmable logic controllers, industrial PCs, servo motion, transport systems, and machine vision. It serves oil, gas, chemicals, mining, metals, cement, pulp and paper, pharmaceuticals, battery manufacturing, food and beverage, power generation, water, marine, and ports industries. The company was founded in 1883 and is headquartered in Zurich, Switzerland.

About Dragonfly Energy

Dragonfly Energy Holdings Corp. engages in the manufacturing and sale of deep cycle lithium-ion batteries for recreational vehicles, marine vessels, solar and off-grid residence industries, and industrial and energy storage markets. The company provides lithium power systems comprising solar panels, chargers and inverters, system monitoring, alternator regulators, accessories, and others. It also offers battery management systems for monitoring and controlling of battery systems and to protect battery cells from damage in various scenarios. The company provides its products under the Dragonfly Energy, Battle Born, and Wakespeed brand names. Dragonfly Energy Holdings Corp. is headquartered in Reno, Nevada.