Polar Power (NASDAQ: POLA) and Hollysys Automation Technologies (NASDAQ:HOLI) are both small-cap utilities companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Insider and Institutional Ownership

7.4% of Polar Power shares are owned by institutional investors. Comparatively, 70.7% of Hollysys Automation Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Polar Power and Hollysys Automation Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Polar Power 8.59% 6.40% 5.86%
Hollysys Automation Technologies 15.46% 9.65% 6.59%

Dividends

Hollysys Automation Technologies pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Polar Power does not pay a dividend. Hollysys Automation Technologies pays out 10.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings for Polar Power and Hollysys Automation Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Polar Power 0 1 0 0 2.00
Hollysys Automation Technologies 1 1 2 0 2.25

Polar Power presently has a consensus target price of $5.00, indicating a potential upside of 0.40%. Hollysys Automation Technologies has a consensus target price of $19.65, indicating a potential downside of 20.34%. Given Polar Power’s higher probable upside, research analysts clearly believe Polar Power is more favorable than Hollysys Automation Technologies.

Valuation & Earnings

This table compares Polar Power and Hollysys Automation Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Polar Power $22.80 million 2.21 $4.40 million N/A N/A
Hollysys Automation Technologies $431.94 million 3.45 $68.94 million $1.14 21.64

Hollysys Automation Technologies has higher revenue and earnings than Polar Power.

Summary

Hollysys Automation Technologies beats Polar Power on 10 of the 12 factors compared between the two stocks.

Polar Power Company Profile

Polar Power, Inc. is engaged in designing, manufacturing and selling direct current (DC) power systems for applications primarily in the telecommunications, military, electric vehicle charging, cogeneration, distributed power and uninterruptable power supply markets. Within the telecommunications market, the Company’s DC power systems provide DC power to service applications that do not have access to the utility grid (such as off-grid applications) or have critical power needs and cannot be without power in the event of utility grid failure (such as back-up power applications). Its product offerings include DC base power systems, DC hybrid power systems and DC solar hybrid power systems. The Company’s technologies include Permanent Magnet Homopolar Hybrid (PMHH) Technology and Supra Controller Technology. Its power and control system architecture is controlled by its digital control system, Supra Controller, which contains software configured to meet specific application needs.

Hollysys Automation Technologies Company Profile

Hollysys Automation Technologies Ltd. is a provider of automation and control technologies, and products. The Company’s segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.

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