Critical Contrast: Gauzy (NASDAQ:GAUZ) & ESS Tech (NYSE:GWH)

ESS Tech (NYSE:GWH) and Gauzy (NASDAQ:GAUZ) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

46.8% of ESS Tech shares are held by institutional investors. 2.3% of ESS Tech shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares ESS Tech and Gauzy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESS Tech	-1,263.79%	-101.96%	-66.46%
Gauzy	-66.25%	N/A	-34.21%

Analyst Recommendations

This is a summary of current recommendations and price targets for ESS Tech and Gauzy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESS Tech	2	4	2	1	2.22
Gauzy	0	0	4	0	3.00

ESS Tech currently has a consensus target price of $14.58, suggesting a potential upside of 229.94%. Gauzy has a consensus target price of $16.25, suggesting a potential upside of 89.61%. Given ESS Tech’s higher possible upside, equities analysts plainly believe ESS Tech is more favorable than Gauzy.

Earnings and Valuation

This table compares ESS Tech and Gauzy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESS Tech	$6.24 million	8.42	-$77.58 million	($6.55)	-0.67
Gauzy	$94.35 million	1.73	-$79.27 million	N/A	N/A

ESS Tech has higher earnings, but lower revenue than Gauzy.

About ESS Tech

ESS Tech, Inc., an energy storage company, designs and produces iron flow batteries for commercial and utility-scale energy storage applications worldwide. It offers energy storage products, which include Energy Warehouse, a behind-the-meter solution; and Energy Center, a front-of-the-meter solution. The company was founded in 2011 and is headquartered in Wilsonville, Oregon.

About Gauzy

Gauzy Ltd. is a fully-integrated light and vision control company which focused on the research, development, manufacturing and marketing of vision and light control technologies. It operates principally in Germany, France, the United States, Canada, China, Singapore and Dubai. Gauzy Ltd. is headquartered in Tel Aviv, Israel.