Head-To-Head Analysis: Beam Global (NASDAQ:BEEM) and ABB (OTCMKTS:ABBNY)

ABB (OTCMKTS:ABBNY) and Beam Global (NASDAQ:BEEM) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ABB	13.55%	30.67%	10.99%
Beam Global	-64.60%	-73.59%	-41.43%

Risk and Volatility

ABB has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Beam Global has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

1.1% of ABB shares are owned by institutional investors. Comparatively, 26.6% of Beam Global shares are owned by institutional investors. 4.9% of ABB shares are owned by insiders. Comparatively, 5.6% of Beam Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for ABB and Beam Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ABB	0	10	1	2	2.38
Beam Global	1	2	0	1	2.25

Beam Global has a consensus target price of $1.50, indicating a potential upside of 121.17%. Given Beam Global’s higher possible upside, analysts plainly believe Beam Global is more favorable than ABB.

Valuation and Earnings

This table compares ABB and Beam Global”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ABB	$33.22 billion	4.60	$4.73 billion	$2.76	30.34
Beam Global	$28.24 million	0.58	-$27.00 million	($0.82)	-0.83

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

Summary

ABB beats Beam Global on 11 of the 15 factors compared between the two stocks.

About ABB

ABB is a global technology company focused on electrification and automation. Its products and services include electrical equipment and systems, industrial motors and drives, automation and control technologies, and robotics for industrial applications. The company serves customers in industries such as manufacturing, energy, transportation and infrastructure, helping them improve productivity, operational efficiency and energy use. ABB operates in markets around the world. ABB was formed in 1988 through the merger of Swedish company ASEA and Switzerland’s Brown, Boveri & Cie.

About Beam Global

Beam Global, formerly known as Envision Solar International, develops and manufactures renewable energy infrastructure for electric vehicle charging and other distributed-energy applications. The company’s systems are designed to generate, store and deliver electricity using solar power, reducing reliance on traditional grid connections. Its primary product is the EV ARC, a portable, solar-powered electric vehicle charging system that can be deployed without trenching or extensive construction. Beam Global also offers related products and configurations for fleet charging, energy storage, backup power and other off-grid or resilient-energy needs, including charging and power systems intended for commercial, municipal and government users.