Head-To-Head Comparison: Stem (NYSE:STEM) vs. Serve Robotics (NASDAQ:SERV)

Serve Robotics (NASDAQ:SERV) and Stem (NYSE:STEM) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Valuation and Earnings

This table compares Serve Robotics and Stem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Serve Robotics	$2.65 million	272.81	-$101.36 million	($1.59)	-5.88
Stem	$156.27 million	0.55	$137.76 million	($9.48)	-1.07

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

Risk and Volatility

Serve Robotics has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Stem has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Serve Robotics and Stem, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Serve Robotics	1	0	6	2	3.00
Stem	2	3	0	0	1.60

Serve Robotics presently has a consensus price target of $17.67, indicating a potential upside of 88.95%. Stem has a consensus price target of $15.75, indicating a potential upside of 55.14%. Given Serve Robotics’ stronger consensus rating and higher probable upside, research analysts plainly believe Serve Robotics is more favorable than Stem.

Institutional & Insider Ownership

61.6% of Stem shares are held by institutional investors. 5.0% of Serve Robotics shares are held by company insiders. Comparatively, 5.1% of Stem shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Serve Robotics and Stem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Serve Robotics	-3,821.98%	-38.54%	-36.93%
Stem	88.16%	N/A	-22.61%

Summary

Stem beats Serve Robotics on 9 of the 15 factors compared between the two stocks.

About Serve Robotics

Serve Robotics Inc. designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc. in July 2023. Serve Robotics Inc. was founded in 2017 and is based in Redwood City, California.

About Stem

Stem, Inc. operates as a digitally connected, intelligent, and renewable energy storage network provider worldwide. The company offers energy storage hardware sourced from original equipment manufacturers (OEMs); edge hardware to aid in the collection of site data and real-time operation and control of the site and other optional equipment; and Athena, a software platform, which offers battery hardware and software-enabled services to operate the energy storage systems. It serves commercial and industrial enterprises, independent power producers, renewable project developers, and utilities and grid operators. The company was incorporated in 2009 and is headquartered in San Francisco, California.