Critical Analysis: Aterian (NASDAQ:ATER) and FuelPositive (OTCMKTS:NHHHF)

FuelPositive (OTCMKTS:NHHHF) and Aterian (NASDAQ:ATER) are both small-cap business services companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Risk & Volatility

FuelPositive has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Aterian has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500.

Valuation & Earnings

This table compares FuelPositive and Aterian”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FuelPositive	N/A	N/A	-$14.05 million	($0.01)	-4.17
Aterian	$99.04 million	0.07	-$11.86 million	($1.61)	-0.44

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

Institutional & Insider Ownership

7.0% of Aterian shares are owned by institutional investors. 19.5% of Aterian shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for FuelPositive and Aterian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FuelPositive	0	0	0	0	0.00
Aterian	1	1	0	0	1.50

Aterian has a consensus price target of $4.00, indicating a potential upside of 469.48%. Given Aterian’s stronger consensus rating and higher probable upside, analysts plainly believe Aterian is more favorable than FuelPositive.

Profitability

This table compares FuelPositive and Aterian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FuelPositive	N/A	-54.47%	-44.36%
Aterian	-15.73%	-47.45%	-26.68%

Summary

Aterian beats FuelPositive on 9 of the 12 factors compared between the two stocks.

About FuelPositive

FuelPositive Corporation, a technology company, provides clean energy solutions in Canada. The company's clean technology solutions include green ammonia (NH3) for use in various industries and applications. Its flagship product is a green ammonia production system that takes air, water, and electricity to produce a non-polluting chemical for various applications, including fertilizer for farming, fuel for grain drying and internal combustion engines, a solution for grid storage, and an alternative for fuel cells. The company was formerly known as EEStor Corporation and changed its name to FuelPositive Corporation in February 2021. FuelPositive Corporation is headquartered in Waterloo, Canada.

About Aterian

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. Its platform offers home and kitchen appliances; kitchenware; cooling and air quality appliances, such as dehumidifiers; health and beauty products; and essential oils under the Squatty Potty, hOmeLabs, Mueller, Pursteam, Healing Solutions, and Photo Paper Direct brand names. The company primarily serves individual online consumers through online retail channels, such as Amazon and Walmart, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in Summit, New Jersey.