Head-To-Head Contrast: Hayward (NYSE:HAYW) & ESS Tech (NYSE:GWH)

ESS Tech (NYSE:GWH) and Hayward (NYSE:HAYW) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-1,045.28%	-1,141.31%	-140.58%
Hayward	13.51%	11.27%	5.59%

Risk and Volatility

ESS Tech has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Hayward has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Insider and Institutional Ownership

46.8% of ESS Tech shares are held by institutional investors. 1.7% of ESS Tech shares are held by insiders. Comparatively, 5.1% of Hayward shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares ESS Tech and Hayward”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$1.58 million	20.72	-$63.44 million	($4.33)	-0.28
Hayward	$1.12 billion	2.64	$151.57 million	$0.68	20.08

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

Analyst Ratings

This is a breakdown of recent ratings for ESS Tech and Hayward, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	1	3	1	0	2.00
Hayward	0	1	3	1	3.00

ESS Tech currently has a consensus target price of $2.50, indicating a potential upside of 107.47%. Hayward has a consensus target price of $19.25, indicating a potential upside of 40.97%. Given ESS Tech’s higher probable upside, analysts plainly believe ESS Tech is more favorable than Hayward.

Summary

Hayward beats ESS Tech on 11 of the 15 factors compared between the two stocks.

About ESS Tech

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.

About Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.