Reviewing EVgo (NASDAQ:EVGO) & NaaS Technology (NASDAQ:NAAS)

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

Insider & Institutional Ownership

1.8% of NaaS Technology shares are owned by institutional investors. Comparatively, 17.4% of EVgo shares are owned by institutional investors. 18.0% of NaaS Technology shares are owned by company insiders. Comparatively, 0.1% of EVgo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

NaaS Technology has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, EVgo has a beta of 2.87, indicating that its stock price is 187% more volatile than the S&P 500.

Valuation & Earnings

This table compares NaaS Technology and EVgo”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NaaS Technology	$104.00 million	0.53	-$2.16 billion	($87.84)	-0.03
EVgo	$402.95 million	0.92	-$125.81 million	($0.40)	-2.95

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NaaS Technology	N/A	N/A	N/A
EVgo	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for NaaS Technology and EVgo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NaaS Technology	1	0	0	0	1.00
EVgo	2	1	6	0	2.44

EVgo has a consensus target price of $2.93, suggesting a potential upside of 148.18%. Given EVgo’s stronger consensus rating and higher probable upside, analysts clearly believe EVgo is more favorable than NaaS Technology.

Summary

EVgo beats NaaS Technology on 9 of the 11 factors compared between the two stocks.

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.

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.