Stock screeners are tools that let investors filter through a large number of stocks according to chosen criteria. While helping investors pick stocks and narrow down options, it is important to remember that a stock screener is just a tool and every investment should be analyzed on its own merits to make sure it fits with your personal portfolio and risk characteristics. Welcome to my new weekly column that finds interesting investment opportunities with the help of our Stock Screener.

This post is a continuation of Stock Screener: Generating power with batteries and solar energy -- Part I

A quick recap: With all the talk lately about alternative energy, I wanted to see what the Power Generation & Storage industry has in store. Within the industry, I gave pretty wide criteria with the only constraints being a market capitalization of over $500 million and a profitable 2006.

The stock screener returned five companies listed here by market cap: Suntech Power Holdings Co., Ltd. (NYSE: STP), Energizer Holdings Inc. (NYSE: ENR), Trina Solar Ltd. (NYSE: TSL), EnerSys Inc. (NYSE: ENS) and Greatbatch Inc. (NYSE: GB). These could roughly be divided into two main businesses: Solar energy and batteries. Energizer, EnerSys and Greatbatch are battery manufacturers for different uses, while Suntech and Trina manufacture PV and solar cells and modules.

In Part I, I looked at the solar stocks, today, I'll look at the battery stocks:

Looking at 1-year returns for the three, we can see that they all performed fairly well with Energizer gaining a respectable 58%.

• Energizer Holdings Inc. (NYSE: ENR) --

Who doesn't know the Energizer bunny? Energizer manufactures dry cell batteries, flashlights and personal care products through its Schick and and Wilkinson Sword brands. These are marketed and sold in more than 165 countries. Energizer became public in 2000. On January 23, the company reported a surprising rise in first-quarter profit despite increasing zinc costs. Sales grew by 8.7% compared to a year earlier and ENR shares received a nice boost as a result. Energizer cautioned that raw material costs in the battery segment will continue to put pressures on margins the remainder of 2007, but price increases along with planned reductions in other operating costs should offset all or the bulk of material cost increases.

ENR stock is up a handsome 20% year-to-date, beating the market handily. Over the past 52 weeks, ENR performed very well, rising 58%. Over the past year, ENR stock reached a low of $49.19 in the beginning of April and a high of $88.34 at the end of February. Energizer has a market cap of $4.8 billion. The company's profitability ratios compare favorably, although its growth rates aren't stellar. That could explain the lower valuation levels. Analysts on average rate the company underweight with a $77 target price. ENR trades at a trailing P/E of 21x and a forward P/E of 18x.

The trend into portable consumer electronics is increasing. With that, consumers need batteries to charge their portable devices. Energizer doesn't stop at AA or AAA batteries, but innovates beyond. Just this last CES, Energizer showcased some innovative solutions, improving on its portable charging like the Energi To Go battery-powered Instant Cell Phone charger. It plans to build a version for laptops and digital cameras. Last week, Philips and Energizer introduced a mobile phone that can run on a regular AAA battery in case the main battery runs low. Also, the market has seen growth in lithium batteries, which could be a competitive advantage for Energizer. In the razor segment, while an updated Intuition Plus razor for women will be coming in the spring (just in time for shorts and skirts), Energizer lost market share in disposable razors, lagging behind market leader Procter & Gamble Co. (NYSE: PG). Energizer has been focusing on cutting costs and improving production. It has also increased battery prices.

• EnerSys Inc. (NYSE: ENS) --

"EnerSys is the global leader in stored energy solutions for industrial applications," with motive power, reserve power, aerospace/defense and specialty batteries. EnerSys complements its battery segment with related products such as chargers, power equipment, battery accessories as well as customer-support services. The company went public in August 2004. On February 7, EnerSys reported third-quarter financial results posting sales growth of 17% and operating earnings growth of 23%. EnerSys issued guidance below analysts estimates. Like Energizer, EnerSys also announced a price increase to offset its higher raw material cost, but the increase will not be fully materialized this quarter.

ENS stock is up 9.3% year-to-date and 27% over the past year, outperforming the market. ENS reached a 52-week low in mid-May of $11.85 and a 52-week high of $21.60 a month and a half later. EnerSys has a market cap of over $820 million. While growth rates compare favorably to industry average, profitability ratios don't. On average, analysts recommend this stock as a Buy with a target price of $21. ENS trades at a trailing P/E of 18x and a P/E of 16.5x 2008 earnings.

Recently, EnerSys announced that it has signed a multi-year contract with Sears Holdings Corp. (NYSE: SHLD) to manufacture and supply Sears with DieHard Platinum battery for aftermarket automotive and marine applications for the Sears Auto Centers. EnerSys also announced it will acquire a majority interest in Energia AD, a producer of industrial batteries located in Targovishte, Bulgaria.

• Greatbatch Inc. (NYSE: GB) --

Greatbatch develops, designs, and manufactures power sources, critical components and precision engineered components for implantable medical devices. It also manufactures through its Electrochem Commercial Power batteries and battery packs for commercial applications, such as oil and gas exploration, pipeline inspection, oceanographic equipment, communication, military and aerospace applications. The company started trading in 2000. On February 8, the company reported a fourth-quarter profit on higher sales of its assembly products. The company beat EPS estimates but not revenue estimates.

Year-to-date, GB stock lost over 5.2% of its value, underperforming the market, but over the past year it is up nearly 16%. Over the last 52 weeks, the stock reached a low of $19.10 in April and a high of $30.05 a month later. Greatbatch has a market cap of $564 million. While growth rate hasn't been stellar, profitability ratios compare very favorably. The average analyst recommendation is a Hold with a $30 target price. GB trades at a trailing P/E of 36x and a forward P/E of 21x.

In November 2006 Greatbatch announced a plan for consolidating its corporate and business unit organization structure, eliminating about 40 corporate and business unit positions and saving $8-10 million. Two week ago, Greatbatch said it agreed to acquire Biomec Inc. for $11.4 million.

So...

There has been a margin squeeze in the battery industry as raw materials such as zinc and nickel prices have shot up. Zinc prices have tripled over the past 2-3 years from $0.5 per pound to around $1.5 per pound today (after reaching $2 per pound at the end of 2006). Zinc prices, however, are expected to decline later in the year due to excess supply.

It is interesting that as opposed to the solar companies, these battery companies rely less on raw material as they are more diversified. The Energizer bunny has been going strong, but can it keep going? ENR seems to be grounded and diversified enough and have good people at the helm so that at the very least it would be a solid company to hold. Greatbatch, on the other hand, seems more risky despite offering the most growth potential. ENS has been solid but not overly exciting since its 2004 IPO, yet institutions seem to like it and perhaps it is poised for a breakout.