Analyzing Denso (OTCMKTS:DNZOY) & Beam Global (NASDAQ:BEEM)

Beam Global (NASDAQ:BEEM) and Denso (OTCMKTS:DNZOY) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings for Beam Global and Denso, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beam Global	1	1	3	0	2.40
Denso	1	2	0	0	1.67

Beam Global presently has a consensus target price of $4.00, suggesting a potential upside of 159.74%. Given Beam Global’s stronger consensus rating and higher possible upside, equities analysts plainly believe Beam Global is more favorable than Denso.

Valuation & Earnings

This table compares Beam Global and Denso”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beam Global	$49.34 million	0.59	-$11.28 million	($1.91)	-0.81
Denso	$47.03 billion	0.85	$2.77 billion	$0.86	15.97

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

Insider & Institutional Ownership

26.6% of Beam Global shares are owned by institutional investors. 5.6% of Beam Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Beam Global has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Denso has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Profitability

This table compares Beam Global and Denso’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beam Global	-105.89%	-61.03%	-37.12%
Denso	4.92%	6.84%	4.34%

Summary

Denso beats Beam Global on 8 of the 14 factors compared between the two stocks.

About Beam Global

Beam Global, a clean-technology innovation company, engages in the design, development, engineering, manufacture, and sale of renewably energized infrastructure products and battery solutions. Its product portfolio includes EV ARC (electric vehicle autonomous renewable charger), an infrastructure product that uses integrated solar power and battery storage to provide a mounting asset and a source of power for factory installed electric vehicle charging stations; Solar Tree DCFC, an off-grid, renewably energized, and single-column mounted smart generation and energy storage system to provide a 150kW DC fast charge to one or more electric vehicles, such as electric buses, heavy-duty vehicles, agricultural equipment, public transportation, and electric vehicles used in the construction industry; and EV ARC DCFC, a DC fast charging system for charging EVs. The company is also involved in the development of EV-Standard, a lamp standard, EV charging, and emergency power product that uses an existing streetlamp's foundation and a combination of solar, wind, grid connection, and onboard energy storage to provide curbside charging; and UAV ARC, an off-grid and renewably energized product and network used to charge aerial drone (UAV) fleets. It offers its solutions for electric vehicle (EV) charging infrastructure, energy storage, energy security, disaster preparedness, street lighting, telecommunications, energy infrastructure, and outdoor media and branding industries. The company was formerly known as Envision Solar International, Inc. and changed its name to Beam Global in September 2020. Beam Global was incorporated in 2006 and is headquartered in San Diego, California.

About Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.