Cooper-Standard (NYSE:CPS) versus Canoo (NYSE:GOEV) Critical Survey

Cooper-Standard (NYSE:CPS) and Canoo (NYSE:GOEV) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Valuation and Earnings

This table compares Cooper-Standard and Canoo’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cooper-Standard	$2.82 billion	0.10	-$201.99 million	($11.69)	-1.42
Canoo	N/A	N/A	-$487.69 million	($18.16)	-0.20

Cooper-Standard has higher revenue and earnings than Canoo. Cooper-Standard is trading at a lower price-to-earnings ratio than Canoo, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cooper-Standard and Canoo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cooper-Standard	-7.17%	-271.44%	-4.27%
Canoo	N/A	-122.06%	-53.03%

Institutional & Insider Ownership

69.1% of Cooper-Standard shares are owned by institutional investors. Comparatively, 36.2% of Canoo shares are owned by institutional investors. 5.2% of Cooper-Standard shares are owned by company insiders. Comparatively, 9.7% of Canoo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cooper-Standard and Canoo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cooper-Standard	0	0	0	0	N/A
Canoo	0	0	4	0	3.00

Canoo has a consensus price target of $49.19, suggesting a potential upside of 1,277.80%. Given Canoo’s higher probable upside, analysts clearly believe Canoo is more favorable than Cooper-Standard.

Risk & Volatility

Cooper-Standard has a beta of 2.86, meaning that its stock price is 186% more volatile than the S&P 500. Comparatively, Canoo has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Summary

Cooper-Standard beats Canoo on 6 of the 11 factors compared between the two stocks.

About Cooper-Standard

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. The company offers sealing systems, including dynamic seals, static seals, encapsulated glasses, textured surfaces with cloth appearance, obstacle detection sensor systems, FlushSeal systems, variable extrusions, specialty sealing products, stainless steel trims, and frameless systems. It also provides fuel and brake delivery systems comprising chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, low oligomer multi-layer convoluted tubes, brake jounce lines, direct injection and port fuel rails, MagAlloy break tube coating, and ArmorTube brake tube coating. In addition, the company offers fluid transfer systems, such as heater/coolant hoses, turbo charger hoses, charged air cooler ducts/assemblies, diesel particulate filter lines, secondary air hoses, degas tanks and deaerators, brake and clutch hoses, air intake and discharge systems, transmission oil cooling hoses, high temperature MLTs, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.

About Canoo

Canoo Inc., a mobility technology company, designs, engineers, develops, and manufactures electric vehicles for commercial and consumer markets in the United States. The company offers lifestyle delivery vehicles, lifestyle vehicles, multi-purpose delivery vehicles, and pickups. It also provides multi-purpose platform architecture is a self-contained, fully functional rolling chassis that directly houses the critical components for operation of an EV. Canoo Inc. was founded in 2017 and is headquartered in Torrance, California.