Otter Tail (NASDAQ:OTTR – Get Free Report) and Polar Power (NASDAQ:POLA – Get Free Report) are both utilities companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
Otter Tail has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Polar Power has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Otter Tail and Polar Power, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Otter Tail | 1 | 3 | 1 | 0 | 2.00 |
| Polar Power | 1 | 0 | 0 | 0 | 1.00 |
Valuation & Earnings
This table compares Otter Tail and Polar Power”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Otter Tail | $1.30 billion | 2.79 | $275.89 million | $6.67 | 13.00 |
| Polar Power | $6.30 million | 0.99 | -$9.13 million | ($3.14) | -0.55 |
Otter Tail has higher revenue and earnings than Polar Power. Polar Power is trading at a lower price-to-earnings ratio than Otter Tail, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Otter Tail and Polar Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Otter Tail | 21.34% | 15.21% | 7.13% |
| Polar Power | -127.53% | -259.19% | -63.38% |
Insider & Institutional Ownership
61.3% of Otter Tail shares are held by institutional investors. Comparatively, 26.1% of Polar Power shares are held by institutional investors. 2.0% of Otter Tail shares are held by insiders. Comparatively, 30.8% of Polar Power shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Otter Tail beats Polar Power on 12 of the 14 factors compared between the two stocks.
About Otter Tail
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets. This segment generates electricity through coal, fuel oil, solar, wind, and natural gas. It serves approximately residential, commercial, and industrial customers. The Manufacturing segment engages in the contract machining, metal parts stamping, fabrication and painting, production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components and extruded raw material stock for the recreational vehicle, lawn and garden, agricultural, construction, and industrial and energy equipment end markets. The Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.
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.
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