Critical Comparison: Thermon Group (NYSE:THR) & Solid Power (NASDAQ:SLDP)

Solid Power (NASDAQ:SLDP) and Thermon Group (NYSE:THR) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Solid Power and Thermon Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Power	-485.47%	-19.69%	-18.39%
Thermon Group	8.31%	13.42%	8.84%

Institutional & Insider Ownership

33.7% of Solid Power shares are owned by institutional investors. Comparatively, 99.8% of Thermon Group shares are owned by institutional investors. 5.7% of Solid Power shares are owned by insiders. Comparatively, 2.5% of Thermon Group shares are owned by 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.

Risk and Volatility

Solid Power has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500. Comparatively, Thermon Group has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$21.75 million	24.13	-$93.41 million	($0.45)	-5.11
Thermon Group	$536.26 million	3.76	$44.57 million	$1.34	45.63

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Solid Power and Thermon Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	1	3	0	2.40
Thermon Group	0	6	0	0	2.00

Solid Power currently has a consensus target price of $6.92, indicating a potential upside of 200.72%. Thermon Group has a consensus target price of $57.00, indicating a potential downside of 6.77%. Given Solid Power’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Solid Power is more favorable than Thermon Group.

Summary

Thermon Group beats Solid Power on 8 of the 14 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

About Thermon Group

Thermon Group Holdings, Inc. provides engineered industrial process heating solutions for process industries in the United States and Latin America, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. It offers heat tracing products, such as electric heat tracing cables, steam heating solutions, controls, monitoring and software, instrumentation, project services, industrial heating and filtration solutions, temporary electrical power distribution and lighting, and other products and services. The company also provides controls, monitoring, and software systems for the control and management of a heat trace system; environmental heating solutions under the Ruffneck, Norsemen, and Catadyne brands; process heating solutions under the Caloritech brand name; filtration solutions under the 3L Filters brand; rail and transit solutions under the Hellfire, Velocity, ArcticSense, and other brand names; and boilers under the Vapor Power, Precision Boilers, and Caloritech brands. In addition, it offers project services; transportation heating products, including track and switch heaters, accessories, control panels, rail heaters, gas blower accessories, and air curtains; transit heaters; and velocity heat products. Further, the company offers temporary power solutions; heating systems, such as engineered electric heat, explosion proof gas catalytic heaters, heaters for harshest environments, methane abatement, and engineered filtration system; electrically, steam, and fluid heated tubing bundles; and pre-insulated tubing and system accessories tubing bundles. It serves chemical and petrochemical, oil and gas, power generation, rail and transit, commercial, energy transition/decarbonization, mining and mineral processing, maritime/shipbuilding, semiconductors, pharmaceutical and biotechnology, food and beverage, data centers, and renewables industries through a network of sales and service professionals, and distributors. Thermon Group Holdings, Inc. was founded in 1954 and is headquartered in Austin, Texas.