Comparing Ultralife (NASDAQ:ULBI) & Romeo Power (NYSE:RMO)

Romeo Power (NYSE:RMO) and Ultralife (NASDAQ:ULBI) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.

Risk and Volatility

Romeo Power has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Ultralife has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Romeo Power and Ultralife, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Romeo Power 1 1 2 0 2.25
Ultralife 0 0 1 0 3.00

Romeo Power presently has a consensus target price of $15.43, indicating a potential upside of 83.63%. Ultralife has a consensus target price of $12.00, indicating a potential upside of 55.24%. Given Romeo Power’s higher probable upside, equities analysts clearly believe Romeo Power is more favorable than Ultralife.

Insider & Institutional Ownership

72.1% of Romeo Power shares are held by institutional investors. Comparatively, 35.0% of Ultralife shares are held by institutional investors. 38.4% of Ultralife shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Romeo Power and Ultralife’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Romeo Power N/A 7.50% 0.16%
Ultralife 4.33% 5.36% 4.24%

Earnings & Valuation

This table compares Romeo Power and Ultralife’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Romeo Power N/A N/A $2.09 million N/A N/A
Ultralife $106.79 million 1.16 $5.20 million N/A N/A

Ultralife has higher revenue and earnings than Romeo Power.

Summary

Ultralife beats Romeo Power on 7 of the 11 factors compared between the two stocks.

About Romeo Power

Romeo Power, Inc., an energy storage technology company, designs and manufactures lithium-ion battery modules and packs for commercial electric vehicles in North America. The company operates through two segments, Romeo Power North America and Joint Venture Support. It also offers battery management systems; and design, research and development, and other engineering related services. Romeo Power, Inc. was founded in 2014 and is headquartered in Vernon, California.

About Ultralife

Ultralife Corp. engages in the manufacture and sale of products for power solutions. It operates through the Battery & Energy Products and Communications System segments. The Battery & Energy Products segment includes Lithium 9-volt, cylindrical, thin cell and various other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems, and accessories such as cables. The Communications System segment comprises radio frequency amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, integrated communication systems for fixed or vehicle applications, and communications and electronics systems design. The company was founded by Arthur M. Liberman in December 1990 and is headquartered in Newark, NY.

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