Critical Contrast: EVgo (NASDAQ:EVGO) & BorgWarner (NYSE:BWA)

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

Valuation & Earnings

This table compares EVgo and BorgWarner”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EVgo	$384.09 million	1.78	-$41.57 million	($0.32)	-6.83
BorgWarner	$14.32 billion	0.81	$277.00 million	$1.25	44.95

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EVgo	-10.82%	N/A	-4.60%
BorgWarner	1.93%	17.89%	7.51%

Insider and Institutional Ownership

17.4% of EVgo shares are held by institutional investors. Comparatively, 95.7% of BorgWarner shares are held by institutional investors. 0.1% of EVgo shares are held by company insiders. Comparatively, 0.8% of BorgWarner shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

EVgo has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, BorgWarner has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EVgo	1	3	6	0	2.50
BorgWarner	0	7	7	0	2.50

EVgo currently has a consensus price target of $5.58, indicating a potential upside of 155.38%. BorgWarner has a consensus price target of $66.77, indicating a potential upside of 18.84%. Given EVgo’s higher probable upside, analysts plainly believe EVgo is more favorable than BorgWarner.

Summary

BorgWarner beats EVgo on 10 of the 13 factors compared between the two stocks.

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.

About BorgWarner

BorgWarner Inc., together with its subsidiaries, provides solutions for combustion, hybrid, and electric vehicles worldwide. It offers turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery modules and systems, battery heaters, and battery charging. The company provides power electronics, control modules, software, friction, and mechanical products for automatic transmissions and torque-management products. It sells its products to original equipment manufacturers of light vehicles, which comprise passenger cars, sport-utility vehicles, vans, and light trucks; commercial vehicles, including medium-duty and heavy-duty trucks, and buses; and off-highway vehicles, such as agricultural and construction machinery, and marine applications, as well as to tier one vehicle systems suppliers and the aftermarket for light, commercial, and off-highway vehicles. The company was formerly known as Borg-Warner Automotive, Inc. BorgWarner Inc. was incorporated in 1987 and is headquartered in Auburn Hills, Michigan.