Solid Power (NASDAQ:SLDP) and EVgo (NASDAQ:EVGO) Critical Contrast

Solid Power (NASDAQ:SLDP) and EVgo (NASDAQ:EVGO) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Risk and Volatility

Solid Power has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, EVgo has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500.

Profitability

This table compares Solid Power and EVgo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Power	-429.55%	-24.88%	-23.07%
EVgo	-14.76%	N/A	-5.69%

Valuation & Earnings

This table compares Solid Power and EVgo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$20.14 million	52.50	-$96.52 million	($0.53)	-10.44
EVgo	$256.83 million	3.41	-$44.33 million	($0.39)	-7.31

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

Institutional & Insider Ownership

33.7% of Solid Power shares are owned by institutional investors. Comparatively, 17.4% of EVgo shares are owned by institutional investors. 7.2% of Solid Power shares are owned by company insiders. Comparatively, 58.8% of EVgo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Solid Power and EVgo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	0	1	0	2.00
EVgo	1	2	6	0	2.56

Solid Power presently has a consensus target price of $7.00, suggesting a potential upside of 26.47%. EVgo has a consensus target price of $5.90, suggesting a potential upside of 107.02%. Given EVgo’s stronger consensus rating and higher probable upside, analysts clearly believe EVgo is more favorable than Solid Power.

Summary

EVgo beats Solid Power on 12 of the 14 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

About EVgo

EVgo, Inc. owns and operates a direct current fast charging network for electric vehicles (EVs) in the United States. The company offers electricity directly to drivers, who access its publicly available networked chargers; original equipment manufacturer charging and related services; fleet and rideshare public charging services; and charging as a service and fleet dedicated charging services. It also provides ancillary services, such as customization of digital applications, charging data integration, loyalty programs, access to chargers behind parking lot or garage pay gates, microtargeted advertising, and charging reservations; and hardware, design, and construction services for charging sites, as well as ongoing operations, maintenance, and networking and software integration solutions through eXtend. In addition, it offers PlugShare such as data, research, and advertising services and equipment procurement and operational services. EVgo, Inc. was incorporated in 2010 and is headquartered in Los Angeles, California.EVgo, Inc. operates as a subsidiary of EVgo Holdings LLC.