Solid Power (NASDAQ:SLDP – Get Free Report) and ABB (OTCMKTS:ABBNY – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Profitability
This table compares Solid Power and ABB’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Solid Power | -485.47% | -19.69% | -18.39% |
| ABB | 13.55% | 31.11% | 11.14% |
Risk & Volatility
Solid Power has a beta of 1.97, indicating that its stock price is 97% more volatile than the S&P 500. Comparatively, ABB has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent recommendations and price targets for Solid Power and ABB, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Solid Power | 1 | 1 | 3 | 0 | 2.40 |
| ABB | 0 | 10 | 1 | 2 | 2.38 |
Solid Power currently has a consensus price target of $6.92, suggesting a potential upside of 247.57%. Given Solid Power’s stronger consensus rating and higher possible upside, equities analysts plainly believe Solid Power is more favorable than ABB.
Insider & Institutional Ownership
33.7% of Solid Power shares are held by institutional investors. Comparatively, 1.1% of ABB shares are held by institutional investors. 5.7% of Solid Power shares are held by insiders. Comparatively, 4.9% of ABB shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Solid Power and ABB”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Solid Power | $21.75 million | 20.88 | -$93.41 million | ($0.42) | -4.74 |
| ABB | $33.22 billion | 4.46 | $4.73 billion | $2.76 | 29.45 |
ABB has higher revenue and earnings than Solid Power. Solid Power is trading at a lower price-to-earnings ratio than ABB, indicating that it is currently the more affordable of the two stocks.
Summary
ABB beats Solid Power on 8 of the 15 factors compared between the two stocks.
About Solid Power
Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.
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.
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