Analyzing FREYR Battery (NYSE:FREY) and Electra Battery Materials (NASDAQ:ELBM)

FREYR Battery (NYSE:FREY) and Electra Battery Materials (NASDAQ:ELBM) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares FREYR Battery and Electra Battery Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FREYR Battery	N/A	-13.98%	-11.76%
Electra Battery Materials	N/A	-7.87%	-4.79%

Earnings & Valuation

This table compares FREYR Battery and Electra Battery Materials’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FREYR Battery	N/A	N/A	-$71.94 million	($0.51)	-3.33
Electra Battery Materials	N/A	N/A	$9.65 million	($0.38)	-1.07

FREYR Battery is trading at a lower price-to-earnings ratio than Electra Battery Materials, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

52.3% of FREYR Battery shares are owned by institutional investors. Comparatively, 32.9% of Electra Battery Materials shares are owned by institutional investors. 22.7% of Electra Battery Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

FREYR Battery has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Electra Battery Materials has a beta of 2.69, suggesting that its share price is 169% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for FREYR Battery and Electra Battery Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FREYR Battery	1	4	0	0	1.80
Electra Battery Materials	0	0	2	0	3.00

FREYR Battery presently has a consensus price target of $5.23, indicating a potential upside of 207.35%. Electra Battery Materials has a consensus price target of $1.93, indicating a potential upside of 375.66%. Given Electra Battery Materials’ stronger consensus rating and higher probable upside, analysts plainly believe Electra Battery Materials is more favorable than FREYR Battery.

Summary

Electra Battery Materials beats FREYR Battery on 10 of the 11 factors compared between the two stocks.

About FREYR Battery

FREYR Battery engages in the production and sale of battery cells for energy storage system, electric mobility, marine, and aviation applications in Europe and internationally. The company designs and manufactures lithium-ion based battery cell facilities. FREYR Battery was founded in 2018 and is based in Luxembourg.

About Electra Battery Materials

Electra Battery Materials Corporation engages in the acquisition and exploration of resource properties in the United States and Canada. It primarily explores for cobalt and silver deposits. The company's flagship project is the Iron Creek cobalt-copper project located in Lemhi County, Idaho. It also operates a cobalt refinery for producing battery materials for the electric vehicle supply chain. The company was formerly known as First Cobalt Corp. and changed its name to Electra Battery Materials Corporation in December 2021. Electra Battery Materials Corporation was incorporated in 2011 and is headquartered in Toronto, Canada.