Microvast (NASDAQ:MVST) versus Dragonfly Energy (NASDAQ:DFLI) Critical Analysis

Microvast (NASDAQ:MVST – Get Rating) and Dragonfly Energy (NASDAQ:DFLI – Get Rating) 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 risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Profitability

This table compares Microvast and Dragonfly Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Microvast	-82.89%	-26.33%	-17.48%
Dragonfly Energy	N/A	-673.40%	-1.98%

Valuation & Earnings

This table compares Microvast and Dragonfly Energy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Microvast	$151.98 million	2.52	-$206.48 million	N/A	N/A
Dragonfly Energy	N/A	N/A	$1.91 million	N/A	N/A

Dragonfly Energy has lower revenue, but higher earnings than Microvast.

Volatility and Risk

Microvast has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Dragonfly Energy has a beta of -0.92, meaning that its share price is 192% less volatile than the S&P 500.

Institutional and Insider Ownership

22.5% of Microvast shares are held by institutional investors. 31.0% of Microvast shares are held by company insiders. Comparatively, 37.9% of Dragonfly Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Microvast and Dragonfly Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Microvast	1	0	1	0	2.00
Dragonfly Energy	0	0	3	0	3.00

Microvast presently has a consensus price target of $6.00, indicating a potential upside of 383.87%. Dragonfly Energy has a consensus price target of $12.33, indicating a potential upside of 242.59%. Given Microvast’s higher possible upside, research analysts clearly believe Microvast is more favorable than Dragonfly Energy.

Summary

Dragonfly Energy beats Microvast on 6 of the 11 factors compared between the two stocks.

About Microvast

(Get Rating)

Microvast Holdings, Inc. designs, develops, and manufactures battery systems for electric vehicles and energy storage systems. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2.It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator. In addition, the company offers battery solutions for commercial vehicles and energy storage systems. Its commercial vehicle markets cover buses, trains, mining trucks, marine and port applications, and automated guided and specialty vehicles, as well as light, medium, heavy-duty trucks in the United States and internationally. The company was incorporated in 2006 and is based in Stafford, Texas.

About Dragonfly Energy

(Get Rating)

Dragonfly Energy Holdings Corp. manufactures and supplies deep cycle lithium-ion batteries for RVs, marine vessels, off-grid installations, and other storage applications. It also focuses on delivering an energy storage solution to enable a sustainable and reliable smart grid through the deployment of its solid-state cell technology. The company is headquartered in Reno, Nevada.