American Superconductor Corporation versus Orion Energy Systems, Inc Head to Head Compare

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This is a head to head compare of American Superconductor Corporation (NASDAQ:AMSC) and Orion Energy Systems, Inc (NASDAQ:OESX) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
AMSC -5.6% -5.6% -22.1%
OESX -16.7% +32.1% +26.7%

Orion Energy Systems, Inc has a higher fundamental rating then American Superconductor Corporation which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

American Superconductor Corporation has larger revenue in the last year than Orion Energy Systems, Inc. Raw revenue comps do not affect the head to head rating.

Both AMSC and OESX have negative earnings over the last year. But, the difference in the size of losses has limited impact on the head-to-head comparison.

Net Income

OESX generates substantially larger revenue per employee ($410,000) than AMSC ($236,000).

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Both Orion Energy Systems, Inc and American Superconductor Corporation generate operating losses, and the margins are very similar.

Revenue per Dollar of Expense

OESX generates $0.03 in levered free cash flow for every $1 of revenue, while AMSC generates a cash flow loss of $-0.11 per $1 of revenue.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

While Orion Energy Systems, Inc is growing revenue, American Superconductor Corporation revenue is actually shrinking.

Revenue Growth

For every $1 in revenue, the stock market prices in $1.10 in market cap for AMSC and $0.68 in market cap for OESX.

Price to Sales

Orion Energy Systems, Inc (NASDAQ:OESX)
American Superconductor Corporation (NASDAQ:AMSC) : 62 to 38