Reviewing Microvast (NASDAQ:MVST) & NeoVolta (NASDAQ:NEOV)

Microvast (NASDAQ:MVST) and NeoVolta (NASDAQ:NEOV) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

Microvast has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, NeoVolta has a beta of -2.06, indicating that its share price is 306% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Microvast and NeoVolta, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microvast	0	1	3	0	2.75
NeoVolta	0	0	0	0	N/A

Microvast presently has a consensus price target of $4.50, indicating a potential upside of 964.58%. Given Microvast’s higher possible upside, equities research analysts clearly believe Microvast is more favorable than NeoVolta.

Insider & Institutional Ownership

20.7% of Microvast shares are held by institutional investors. Comparatively, 5.1% of NeoVolta shares are held by institutional investors. 31.3% of Microvast shares are held by insiders. Comparatively, 15.0% of NeoVolta shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Microvast	-29.79%	-18.01%	-9.80%
NeoVolta	-68.01%	-32.41%	-32.25%

Valuation & Earnings

This table compares Microvast and NeoVolta’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microvast	$306.62 million	0.44	-$106.34 million	($0.32)	-1.32
NeoVolta	$3.46 million	26.13	-$2.64 million	($0.06)	-45.33

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

Summary

Microvast beats NeoVolta on 9 of the 12 factors compared between the two stocks.

About Microvast

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 NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.