Financial Comparison: Valeo (OTCMKTS:VLEEY) and EVgo (NASDAQ:EVGO)

EVgo (NASDAQ:EVGO) and Valeo (OTCMKTS:VLEEY) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

17.4% of EVgo shares are owned by institutional investors. Comparatively, 0.0% of Valeo shares are owned by institutional investors. 58.8% of EVgo shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for EVgo and Valeo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	1	2	6	0	2.56
Valeo	0	6	1	1	2.38

EVgo presently has a consensus target price of $5.82, suggesting a potential upside of 89.47%. Given EVgo’s stronger consensus rating and higher probable upside, equities research analysts clearly believe EVgo is more favorable than Valeo.

Volatility & Risk

EVgo has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, Valeo has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares EVgo and Valeo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$333.13 million	2.84	-$44.33 million	($0.39)	-7.87
Valeo	$23.26 billion	0.16	$175.30 million	N/A	N/A

Valeo has higher revenue and earnings than EVgo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EVgo	-14.76%	N/A	-5.69%
Valeo	N/A	N/A	N/A

Summary

EVgo beats Valeo on 7 of the 12 factors compared between the two stocks.

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.

About Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.