Critical Review: Polar Power (NASDAQ:POLA) vs. Exelon (NASDAQ:EXC)

Polar Power (NASDAQ:POLA) and Exelon (NASDAQ:EXC) are both utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Polar Power and Exelon’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polar Power	-104.14%	-135.21%	-55.02%
Exelon	11.41%	9.97%	2.48%

Volatility & Risk

Polar Power has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Exelon has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Institutional and Insider Ownership

26.1% of Polar Power shares are owned by institutional investors. Comparatively, 80.9% of Exelon shares are owned by institutional investors. 30.8% of Polar Power shares are owned by insiders. Comparatively, 0.1% of Exelon shares are owned 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.

Valuation & Earnings

This table compares Polar Power and Exelon”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polar Power	$13.97 million	0.34	-$4.68 million	($2.24)	-0.79
Exelon	$24.26 billion	2.02	$2.77 billion	$2.73	17.54

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

Analyst Ratings

This is a summary of current ratings for Polar Power and Exelon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polar Power	1	0	0	0	1.00
Exelon	2	7	9	0	2.39

Exelon has a consensus price target of $51.47, indicating a potential upside of 7.49%. Given Exelon’s stronger consensus rating and higher probable upside, analysts clearly believe Exelon is more favorable than Polar Power.

Summary

Exelon beats Polar Power on 12 of the 14 factors compared between the two stocks.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.

About Exelon

Exelon Corporation, a utility services holding company, engages in the energy distribution and transmission businesses in the United States and Canada. The company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers. It also offers support services, including legal, human resources, information technology, supply management, financial, engineering, customer operations, transmission and distribution planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers. Exelon Corporation was incorporated in 1999 and is headquartered in Chicago, Illinois.