Analyzing Driven Brands (NASDAQ:DRVN) & EVgo (NYSE:EVGO)

Driven Brands (NASDAQ:DRVN – Get Rating) and EVgo (NYSE:EVGO – Get Rating) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Insider & Institutional Ownership

38.2% of Driven Brands shares are held by institutional investors. Comparatively, 13.0% of EVgo shares are held by institutional investors. 2.6% of Driven Brands shares are held by insiders. Comparatively, 74.5% of EVgo shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Driven Brands has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, EVgo has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Driven Brands and EVgo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	0	2	7	0	2.78
EVgo	0	3	5	0	2.63

Driven Brands currently has a consensus price target of $37.56, suggesting a potential upside of 33.51%. EVgo has a consensus price target of $9.64, suggesting a potential upside of 49.73%. Given EVgo’s higher probable upside, analysts plainly believe EVgo is more favorable than Driven Brands.

Valuation and Earnings

This table compares Driven Brands and EVgo’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Driven Brands	$2.03 billion	2.32	$43.19 million	$0.22	127.87
EVgo	$54.59 million	31.28	-$27.58 million	($0.40)	-16.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Driven Brands	1.81%	11.51%	2.98%
EVgo	-50.51%	N/A	-6.79%

Summary

Driven Brands beats EVgo on 10 of the 14 factors compared between the two stocks.

About Driven Brands

(Get Rating)

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. The company offers various services, such as paint, collision, glass, vehicle repair, car wash, oil change, and maintenance services. It also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as provides training services to repair and maintenance, and paint and collision shops. The company sells its products and services under the Take 5 Oil Change, IMO, CARSTAR, ABRA, Fix Auto, Maaco, Meineke, Uniban, 1-800-Radiator & A/C, PH Vitres D'Autos, Spire Supply, and Automotive Training Institute names. As of December 25, 2021, it operated 4,412 company-operated, franchised, and independently-operated stores. Driven Brands Holdings Inc. was founded in 1972 and is headquartered in Charlotte, North Carolina.

About EVgo

(Get Rating)

EVgo, Inc. owns and operates a direct current fast charging network 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 and pilots microtargeted advertising, and charging reservations; and maintenance and development and project management services through eXtendTM, including electric vehicle supply equipment installation, networking, and operations. The company was incorporated in 2010 and is based in Los Angeles, California.