GrafTech International (NYSE:EAF) & ESS Tech (NYSE:GWH) Financial Analysis

GrafTech International (NYSE:EAFGet Free Report) and ESS Tech (NYSE:GWHGet Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Profitability

This table compares GrafTech International and ESS Tech’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GrafTech International -34.58% N/A -17.50%
ESS Tech N/A -1,251.69% -139.79%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for GrafTech International and ESS Tech, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GrafTech International 3 3 0 0 1.50
ESS Tech 1 1 1 0 2.00

GrafTech International presently has a consensus target price of $10.67, indicating a potential upside of 38.35%. ESS Tech has a consensus target price of $2.00, indicating a potential upside of 173.60%. Given ESS Tech’s stronger consensus rating and higher possible upside, analysts clearly believe ESS Tech is more favorable than GrafTech International.

Earnings and Valuation

This table compares GrafTech International and ESS Tech”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GrafTech International $504.13 million 0.40 -$219.84 million ($6.80) -1.13
ESS Tech $1.58 million 13.60 -$63.44 million ($3.37) -0.22

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

Volatility & Risk

GrafTech International has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, ESS Tech has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Insider & Institutional Ownership

92.8% of GrafTech International shares are held by institutional investors. Comparatively, 46.8% of ESS Tech shares are held by institutional investors. 1.2% of GrafTech International shares are held by insiders. Comparatively, 1.4% of ESS Tech shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

ESS Tech beats GrafTech International on 9 of the 14 factors compared between the two stocks.

About GrafTech International

(Get Free Report)

GrafTech International Ltd. research, develops, manufactures, and sells graphite and carbon-based solutions worldwide. The company offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes and synthetic graphite. It sells its products primarily through direct sales force, independent sales representatives, and distributors. GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

About ESS Tech

(Get Free Report)

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

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