Critical Analysis: EVgo (NASDAQ:EVGO) vs. XPEL (NASDAQ:XPEL)

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

Risk & Volatility

XPEL has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, EVgo has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPEL	10.12%	19.20%	14.79%
EVgo	-14.76%	N/A	-5.69%

Insider & Institutional Ownership

75.1% of XPEL shares are held by institutional investors. Comparatively, 17.4% of EVgo shares are held by institutional investors. 9.5% of XPEL shares are held by company insiders. Comparatively, 58.8% of EVgo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$420.40 million	3.30	$45.49 million	$1.69	29.62
EVgo	$256.83 million	3.73	-$44.33 million	($0.39)	-7.97

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

Analyst Recommendations

This is a summary of current recommendations and price targets for XPEL and EVgo, as provided by MarketBeat.com.

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

EVgo has a consensus target price of $5.82, suggesting a potential upside of 87.03%. Given EVgo’s stronger consensus rating and higher probable upside, analysts clearly believe EVgo is more favorable than XPEL.

Summary

XPEL beats EVgo on 8 of the 14 factors compared between the two stocks.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

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.