Flux Power (NASDAQ:FLUX) & Orion Energy Systems (NASDAQ:OESX) Critical Contrast
by Jessica Moore · The Cerbat GemOrion Energy Systems (NASDAQ:OESX – Get Free Report) and Flux Power (NASDAQ:FLUX – Get Free Report) are both small-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Volatility and Risk
Orion Energy Systems has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Flux Power has a beta of 1.66, meaning that its stock price is 66% more volatile than the S&P 500.
Insider & Institutional Ownership
52.6% of Orion Energy Systems shares are owned by institutional investors. Comparatively, 38.0% of Flux Power shares are owned by institutional investors. 5.3% of Orion Energy Systems shares are owned by insiders. Comparatively, 22.0% of Flux Power shares are owned 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.
Profitability
This table compares Orion Energy Systems and Flux Power’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Orion Energy Systems | 0.04% | 11.66% | 3.40% |
| Flux Power | -17.68% | -231.21% | -24.02% |
Analyst Ratings
This is a summary of current ratings for Orion Energy Systems and Flux Power, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Orion Energy Systems | 1 | 1 | 2 | 0 | 2.25 |
| Flux Power | 1 | 1 | 1 | 0 | 2.00 |
Orion Energy Systems currently has a consensus price target of $36.50, suggesting a potential upside of 19.91%. Flux Power has a consensus price target of $1.60, suggesting a potential upside of 150.00%. Given Flux Power’s higher possible upside, analysts plainly believe Flux Power is more favorable than Orion Energy Systems.
Earnings & Valuation
This table compares Orion Energy Systems and Flux Power”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Orion Energy Systems | $86.31 million | 1.44 | -$3.16 million | ($0.05) | -608.80 |
| Flux Power | $42.13 million | 0.33 | -$7.45 million | ($0.38) | -1.68 |
Orion Energy Systems has higher revenue and earnings than Flux Power. Orion Energy Systems is trading at a lower price-to-earnings ratio than Flux Power, indicating that it is currently the more affordable of the two stocks.
Summary
Orion Energy Systems beats Flux Power on 10 of the 14 factors compared between the two stocks.
About Orion Energy Systems
Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. It operates in three segments: Lighting, Maintenance, and Electric Vehicle (EV). The company offers light emitting diode (LED) lighting products; construction and engineering services for commercial lighting and energy management system; lighting and electrical system maintenance, repair, and replacement services; and EV charging station and installation solutions. It also provides LED high bay fixtures and LED troffer retrofits; smart lighting controls, a wireless Internet of Things enabled control solution that provides lighting control options and data intelligence capabilities for building managers; and various LED fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, the company offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, facility design commissioning, and recycling. It serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.
About Flux Power
Flux Power Holdings, Inc., through its subsidiary Flux Power, Inc., designs, develops, manufactures, and sells lithium-ion energy storage solutions for lift trucks, airport ground support equipment, and other industrial and commercial applications in the North America. It offers battery management system (BMS) that provides cell balancing, charging, discharging, monitoring, and communication between the pack and the forklift. The company also provides 24-volt onboard chargers for its Class 3 Walkie pallet packs; and smart wall mounted chargers to interface with its BMS. It sells its products directly to small companies and end-users, as well as through original equipment manufacturers, lift equipment dealers, and battery distributors. The company is headquartered in Vista, California.