Financial Analysis: ABB (OTCMKTS:ABBNY) and Microvast (NASDAQ:MVST)

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

Valuation & Earnings

This table compares Microvast and ABB”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Microvast $427.52 million 0.52 -$29.22 million ($0.02) -28.93
ABB $33.22 billion 5.27 $4.73 billion $2.77 34.66

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

Risk & Volatility

Microvast has a beta of 3.6, indicating that its share price is 260% more volatile than the S&P 500. Comparatively, ABB has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Microvast and ABB, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Microvast 1 1 1 0 2.00
ABB 0 10 1 2 2.38

Microvast presently has a consensus target price of $4.00, suggesting a potential upside of 591.32%. Given Microvast’s higher possible upside, equities analysts clearly believe Microvast is more favorable than ABB.

Profitability

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

Net Margins Return on Equity Return on Assets
Microvast 13.95% -10.34% -4.64%
ABB 13.86% 31.25% 11.17%

Insider and Institutional Ownership

20.7% of Microvast shares are held by institutional investors. Comparatively, 1.1% of ABB shares are held by institutional investors. 44.8% of Microvast shares are held by company insiders. Comparatively, 4.9% of ABB shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

ABB beats Microvast on 9 of the 14 factors compared between the two stocks.

About Microvast

(Get Free Report)

Microvast Holdings, Inc. provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port vehicles, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks. It operates China, rest of the Asia Pacific, Europe, and the United States. Microvast Holdings, Inc. was incorporated in 2006 and is headquartered in Stafford, Texas.

About ABB

(Get Free Report)

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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