Critical Analysis: AER Energy Resources (OTCMKTS:AERN) versus NeoVolta (NASDAQ:NEOV)

NeoVolta (NASDAQ:NEOV) and AER Energy Resources (OTCMKTS:AERN) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for NeoVolta and AER Energy Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NeoVolta	0	0	1	0	3.00
AER Energy Resources	0	0	0	0	0.00

NeoVolta currently has a consensus price target of $7.50, indicating a potential upside of 141.94%. Given NeoVolta’s stronger consensus rating and higher possible upside, equities analysts clearly believe NeoVolta is more favorable than AER Energy Resources.

Profitability

This table compares NeoVolta and AER Energy Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NeoVolta	-128.91%	-76.86%	-72.38%
AER Energy Resources	N/A	N/A	N/A

Institutional & Insider Ownership

5.1% of NeoVolta shares are held by institutional investors. 15.2% of NeoVolta shares are held by company insiders. Comparatively, 61.0% of AER Energy Resources shares are held by company 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 and Earnings

This table compares NeoVolta and AER Energy Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NeoVolta	$2.52 million	41.03	-$2.30 million	($0.10)	-31.00
AER Energy Resources	N/A	N/A	N/A	N/A	N/A

AER Energy Resources has lower revenue, but higher earnings than NeoVolta.

Summary

NeoVolta beats AER Energy Resources on 5 of the 9 factors compared between the two stocks.

About NeoVolta

NeoVolta Inc. designs, manufactures, and sells energy storage systems in the United States. It provides NV14, NV14-K, and NV 24 energy storage systems, which stores and uses energy through batteries and an inverter at residential or commercial sites. The company markets and sells its products directly to certified solar installers and solar equipment distributors. NeoVolta Inc. was formed in 2018 and is headquartered in Poway, California.

About AER Energy Resources

AER Energy Resources, Inc., through its subsidiaries, engages in acquiring, managing, and operating oil and gas properties in North America. The company is also involved in the recycling of used motor oil; marketing of related fuel and energy products to users, suppliers, and recycler’s; and real estate business. AER Energy Resources, Inc. was founded in 1989 and is based in Scottsdale, Arizona.