Head to Head Review: Erayak Power Solution Group (NASDAQ:RAYA) versus FREYR Battery (NYSE:FREY)

FREYR Battery (NYSE:FREY) and Erayak Power Solution Group (NASDAQ:RAYA) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Valuation and Earnings

This table compares FREYR Battery and Erayak Power Solution Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FREYR Battery	N/A	N/A	-$71.94 million	($0.76)	-6.45
Erayak Power Solution Group	$22.85 million	0.05	-$1.39 million	N/A	N/A

Erayak Power Solution Group has higher revenue and earnings than FREYR Battery.

Profitability

This table compares FREYR Battery and Erayak Power Solution Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FREYR Battery	N/A	-19.16%	-16.70%
Erayak Power Solution Group	N/A	N/A	N/A

Insider and Institutional Ownership

52.3% of FREYR Battery shares are owned by institutional investors. Comparatively, 0.3% of Erayak Power Solution Group shares are owned by institutional investors. 20.4% of FREYR Battery shares are owned by 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 Ratings

This is a breakdown of current recommendations and price targets for FREYR Battery and Erayak Power Solution Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FREYR Battery	0	0	0	0	0.00
Erayak Power Solution Group	1	0	0	0	1.00

Volatility & Risk

FREYR Battery has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Erayak Power Solution Group has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Summary

Erayak Power Solution Group beats FREYR Battery on 6 of the 8 factors compared between the two stocks.

About FREYR Battery

FREYR Battery, Inc. provides battery solutions in the United States, Norway, and internationally. The company develops battery cell manufacturing facilities. It serves its products to energy storage systems and commercial mobility, including marine applications and commercial vehicles markets. The company is headquartered in Luxembourg.

About Erayak Power Solution Group

Erayak Power Solution Group Inc., through its subsidiaries, engages in the research and development, manufacture, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery and smart chargers, and custom-designed products. The company's products are used in agricultural and industrial vehicles, recreational vehicles, electrical appliances, and outdoor living products. It operates in China, France, Poland, Mexico, and the United Kingdom. The company was incorporated in 2019 and is based in Wenzhou, the People's Republic of China. Erayak Power Solution Group Inc. operates as a subsidiary of Erayak International Limited.