Comparing Gentherm (NASDAQ:THRM) and EVgo (NASDAQ:EVGO)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gentherm and EVgo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	1	4	2	0	2.14
EVgo	1	2	8	0	2.64

Gentherm currently has a consensus target price of $40.40, indicating a potential upside of 37.18%. EVgo has a consensus target price of $5.27, indicating a potential upside of 138.53%. Given EVgo’s stronger consensus rating and higher possible upside, analysts plainly believe EVgo is more favorable than Gentherm.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.50 billion	0.60	$18.28 million	$0.61	48.28
EVgo	$384.09 million	1.77	-$41.57 million	($0.32)	-6.91

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gentherm	1.22%	10.07%	5.11%
EVgo	-10.82%	N/A	-4.70%

Volatility & Risk

Gentherm has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, EVgo has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500.

Insider and Institutional Ownership

97.1% of Gentherm shares are held by institutional investors. Comparatively, 17.4% of EVgo shares are held by institutional investors. 1.4% of Gentherm 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, large money managers and endowments believe a stock is poised for long-term growth.

Summary

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

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.

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.