Head to Head Contrast: EVgo (NASDAQ:EVGO) & Valvoline (NYSE:VVV)

EVgo (NASDAQ:EVGO) and Valvoline (NYSE:VVV) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EVgo	-13.50%	N/A	-5.79%
Valvoline	5.17%	65.12%	7.11%

Volatility and Risk

EVgo has a beta of 2.82, suggesting that its share price is 182% more volatile than the S&P 500. Comparatively, Valvoline has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.

Earnings & Valuation

This table compares EVgo and Valvoline”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$384.09 million	1.29	-$41.57 million	($0.40)	-3.95
Valvoline	$1.71 billion	2.48	$210.70 million	$0.80	41.62

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

Institutional and Insider Ownership

17.4% of EVgo shares are owned by institutional investors. Comparatively, 96.1% of Valvoline shares are owned by institutional investors. 0.1% of EVgo shares are owned by company insiders. Comparatively, 0.7% of Valvoline shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for EVgo and Valvoline, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	2	1	5	0	2.38
Valvoline	0	4	11	1	2.81

EVgo presently has a consensus price target of $3.82, suggesting a potential upside of 141.56%. Valvoline has a consensus price target of $42.56, suggesting a potential upside of 27.82%. Given EVgo’s higher probable upside, research analysts clearly believe EVgo is more favorable than Valvoline.

Summary

Valvoline beats EVgo on 13 of the 15 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 Valvoline

Valvoline Inc. engages in the operation and franchising of vehicle service centers and retail stores in the United States and Canada. The company, through its service centers, provides fluid exchange for motor oil, transmission and differential fluid, and coolant; parts replacement for batteries, filters, wiper blades, and belts; and safety services, such as tire inflation and rotation, bulbs, and safety checks. It offers its services for passenger cars, hybrid and battery electric vehicles, and light and medium duty vehicles. The company was founded in 1866 and is headquartered in Lexington, Kentucky.