Reviewing RideNow Group (NASDAQ:RDNW) and NaaS Technology (NASDAQ:NAAS)

RideNow Group (NASDAQ:RDNW) and NaaS Technology (NASDAQ:NAAS) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Volatility & Risk

RideNow Group has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, NaaS Technology has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Institutional and Insider Ownership

66.1% of RideNow Group shares are owned by institutional investors. Comparatively, 1.8% of NaaS Technology shares are owned by institutional investors. 55.3% of RideNow Group shares are owned by company insiders. Comparatively, 18.0% of NaaS Technology shares are owned 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.

Earnings and Valuation

This table compares RideNow Group and NaaS Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RideNow Group	$1.08 billion	0.20	-$52.40 million	($0.23)	-24.65
NaaS Technology	$17.89 million	2.96	-$62.77 million	($87.84)	-0.04

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

Analyst Recommendations

This is a breakdown of current recommendations for RideNow Group and NaaS Technology, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RideNow Group	1	2	0	0	1.67
NaaS Technology	1	0	0	0	1.00

RideNow Group presently has a consensus price target of $8.50, suggesting a potential upside of 49.91%. Given RideNow Group’s stronger consensus rating and higher probable upside, analysts plainly believe RideNow Group is more favorable than NaaS Technology.

Profitability

This table compares RideNow Group and NaaS Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RideNow Group	-0.76%	-2,628.57%	-1.17%
NaaS Technology	N/A	N/A	N/A

Summary

RideNow Group beats NaaS Technology on 8 of the 13 factors compared between the two stocks.

About RideNow Group

RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.

About NaaS Technology

NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.