Head to Head Review: EVgo (NASDAQ:EVGO) & AB Volvo (OTCMKTS:VLVLY)

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

Profitability

This table compares EVgo and AB Volvo’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%
AB Volvo	8.47%	22.66%	6.10%

Insider and Institutional Ownership

17.4% of EVgo shares are held by institutional investors. Comparatively, 0.0% of AB Volvo shares are held by institutional investors. 58.8% of EVgo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

EVgo has a beta of 2.38, suggesting that its share price is 138% more volatile than the S&P 500. Comparatively, AB Volvo has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$256.83 million	3.74	-$44.33 million	($0.39)	-8.00
AB Volvo	$49.84 billion	1.34	$4.77 billion	$2.03	16.20

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for EVgo and AB Volvo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	1	2	6	0	2.56
AB Volvo	1	4	0	2	2.43

EVgo currently has a consensus price target of $5.82, indicating a potential upside of 86.43%. Given EVgo’s stronger consensus rating and higher probable upside, analysts clearly believe EVgo is more favorable than AB Volvo.

Summary

AB Volvo beats EVgo on 8 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 AB Volvo

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.