Head to Head Comparison: Electrovaya (NASDAQ:ELVA) versus Hoku (OTCMKTS:HOKUQ)

Hoku (OTCMKTS:HOKUQ) and Electrovaya (NASDAQ:ELVA) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Hoku and Electrovaya’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hoku	N/A	N/A	N/A
Electrovaya	-3.88%	-15.42%	-4.24%

Insider and Institutional Ownership

22.5% of Electrovaya shares are owned by institutional investors. 2.2% of Hoku shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Hoku has a beta of -15, meaning that its stock price is 1,600% less volatile than the S&P 500. Comparatively, Electrovaya has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Hoku and Electrovaya, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hoku	0	0	0	0	0.00
Electrovaya	0	0	4	1	3.20

Electrovaya has a consensus target price of $6.10, indicating a potential upside of 145.97%. Given Electrovaya’s stronger consensus rating and higher probable upside, analysts plainly believe Electrovaya is more favorable than Hoku.

Earnings & Valuation

This table compares Hoku and Electrovaya”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hoku	N/A	N/A	N/A	N/A	N/A
Electrovaya	$43.67 million	2.28	-$1.49 million	($0.04)	-62.00

Hoku has higher earnings, but lower revenue than Electrovaya.

Summary

Electrovaya beats Hoku on 7 of the 11 factors compared between the two stocks.

About Hoku

Hoku Corporation operates as a solar energy products and services company primarily in the United States. It focuses on manufacturing polysilicon, a primary material used in the manufacture of photovoltaic (PV) modules; and designing, engineering, and installing turnkey PV systems and related services in Hawaii using solar modules purchased from third-party suppliers. The company was formerly known as Hoku Scientific, Inc. and changed its name to Hoku Corporation in March 2010. Hoku Corporation was incorporated in 2001 and is headquartered in Honolulu, Hawaii. On July 2, 2013, Hoku Corporation along with its affiliates filed a voluntary petition for liquidation under Chapter 7 in the U.S. Bankruptcy Court for the District of Idaho.

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.