Critical Survey: EVgo (NASDAQ:EVGO) versus SES AI (NYSE:SES)

SES AI (NYSE:SES) and EVgo (NASDAQ:EVGO) are both small-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for SES AI and EVgo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SES AI	1	1	1	0	2.00
EVgo	2	2	5	0	2.33

SES AI presently has a consensus price target of $2.70, indicating a potential upside of 386.49%. EVgo has a consensus price target of $5.28, indicating a potential upside of 234.18%. Given SES AI’s higher probable upside, analysts plainly believe SES AI is more favorable than EVgo.

Institutional & Insider Ownership

29.8% of SES AI shares are held by institutional investors. Comparatively, 17.4% of EVgo shares are held by institutional investors. 13.8% of SES AI shares are held by company insiders. Comparatively, 0.1% of EVgo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

SES AI has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, EVgo has a beta of 2.78, meaning that its stock price is 178% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SES AI	-331.72%	-28.65%	-23.21%
EVgo	-11.15%	N/A	-5.07%

Valuation and Earnings

This table compares SES AI and EVgo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SES AI	$21.00 million	9.69	-$73.04 million	($0.22)	-2.52
EVgo	$384.09 million	1.29	-$41.57 million	($0.35)	-4.51

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

Summary

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

About SES AI

SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.

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.