Financial Analysis: GreenPower Motor (NASDAQ:GP) and Graham (NYSE:GHM)

Graham (NYSE:GHM) and GreenPower Motor (NASDAQ:GP) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Volatility and Risk

Graham has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Earnings and Valuation

This table compares Graham and GreenPower Motor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graham	$245.29 million	4.15	$12.50 million	$1.04	83.46
GreenPower Motor	$16.39 million	0.26	-$5.48 million	($0.68)	-0.86

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Graham and GreenPower Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graham	0	3	2	0	2.40
GreenPower Motor	1	1	0	0	1.50

Graham currently has a consensus target price of $132.50, suggesting a potential upside of 52.66%. Given Graham’s stronger consensus rating and higher probable upside, research analysts clearly believe Graham is more favorable than GreenPower Motor.

Profitability

This table compares Graham and GreenPower Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graham	4.53%	11.09%	5.17%
GreenPower Motor	-24.28%	N/A	-7.44%

Insider and Institutional Ownership

69.5% of Graham shares are owned by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are owned by institutional investors. 2.4% of Graham shares are owned by insiders. Comparatively, 28.1% of GreenPower Motor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Graham beats GreenPower Motor on 12 of the 14 factors compared between the two stocks.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.