Analyzing Polar Power (NASDAQ:POLA) and RWE (OTCMKTS:RWEOY)

RWE (OTCMKTS:RWEOY) and Polar Power (NASDAQ:POLA) are both utilities companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares RWE and Polar Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RWE	10.82%	5.42%	2.01%
Polar Power	-104.14%	-135.21%	-55.02%

Institutional and Insider 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares RWE and Polar Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RWE	$26.22 billion	1.54	$5.56 billion	$3.50	17.06
Polar Power	$8.33 million	0.54	-$4.68 million	($2.24)	-0.75

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

Risk & Volatility

RWE has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, Polar Power has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for RWE and Polar Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RWE	0	2	3	0	2.60
Polar Power	1	0	0	0	1.00

RWE presently has a consensus price target of $53.30, suggesting a potential downside of 10.74%. Given RWE’s stronger consensus rating and higher probable upside, analysts clearly believe RWE is more favorable than Polar Power.

Summary

RWE beats Polar Power on 11 of the 14 factors compared between the two stocks.

About RWE

RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities. The company serves commercial, industrial, and corporate customers. RWE Aktiengesellschaft was founded in 1898 and is headquartered in Essen, Germany.

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.