Head to Head Comparison: Comp En De Mn Cemig ADS (NYSE:CIG) and Polar Power (NASDAQ:POLA)

Polar Power (NASDAQ:POLA) and Comp En De Mn Cemig ADS (NYSE:CIG) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.

Insider and Institutional Ownership

26.1% of Polar Power shares are owned by institutional investors. 30.8% of Polar Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Polar Power has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Comp En De Mn Cemig ADS has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Polar Power and Comp En De Mn Cemig ADS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Polar Power	1	0	0	0	1.00
Comp En De Mn Cemig ADS	1	3	0	0	1.75

Profitability

This table compares Polar Power and Comp En De Mn Cemig ADS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Polar Power	-104.14%	-135.21%	-55.02%
Comp En De Mn Cemig ADS	9.45%	15.20%	6.81%

Earnings and Valuation

This table compares Polar Power and Comp En De Mn Cemig ADS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Polar Power	$13.97 million	0.36	-$4.68 million	($2.24)	-0.83
Comp En De Mn Cemig ADS	$7.38 billion	N/A	$1.32 billion	$0.20	10.13

Comp En De Mn Cemig ADS has higher revenue and earnings than Polar Power. Polar Power is trading at a lower price-to-earnings ratio than Comp En De Mn Cemig ADS, indicating that it is currently the more affordable of the two stocks.

Summary

Comp En De Mn Cemig ADS beats Polar Power on 9 of the 11 factors compared between the two stocks.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.

About Comp En De Mn Cemig ADS

Companhia Energética de Minas Gerais, through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Brazil. The company generates electricity through renewable energy sources, such as water, wind, sun, and biomass; or non-renewable sources, including fossil and nuclear fuels. As of December 31, 2016, it operated hydroelectric plants, thermoelectric plants, and solar plants with a total installed capacity of approximately 8,000 megawatts in 10 states of Brazil. It is also involved in the telecommunications and energy solutions consulting businesses; exploitation of natural gas; sale and trading of electricity; and acquisition, transport, and distribution of gas and its subproducts and derivatives, as well as provision of technology systems and systems for operational management of public service concessions, including companies operating in electricity, gas, water and sewerage, and other utility companies. The company was founded in 1952 and is headquartered in Belo Horizonte, Brazil.