Evolv Technologies (EVLV) versus Its Peers Critical Review

Evolv Technologies (NASDAQ:EVLV) is one of 20 publicly-traded companies in the “Computer peripheral equipment, not elsewhere classified” industry, but how does it compare to its competitors? We will compare Evolv Technologies to similar businesses based on the strength of its earnings, dividends, institutional ownership, risk, valuation, profitability and analyst recommendations.

Institutional and Insider Ownership

52.2% of Evolv Technologies shares are held by institutional investors. Comparatively, 55.3% of shares of all “Computer peripheral equipment, not elsewhere classified” companies are held by institutional investors. 10.7% of Evolv Technologies shares are held by company insiders. Comparatively, 19.7% of shares of all “Computer peripheral equipment, not elsewhere classified” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Evolv Technologies and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolv Technologies	-187.36%	-45.24%	-28.93%
Evolv Technologies Competitors	-9.65%	-57.58%	1.56%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Evolv Technologies and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolv Technologies	0	1	2	0	2.67
Evolv Technologies Competitors	124	646	1143	83	2.59

Evolv Technologies presently has a consensus target price of $7.87, suggesting a potential upside of 15.69%. As a group, “Computer peripheral equipment, not elsewhere classified” companies have a potential upside of 10.85%. Given Evolv Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Evolv Technologies is more favorable than its competitors.

Risk and Volatility

Evolv Technologies has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, Evolv Technologies’ competitors have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Valuation and Earnings

This table compares Evolv Technologies and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Evolv Technologies	$55.19 million	-$86.41 million	-7.01
Evolv Technologies Competitors	$1.28 billion	$41.43 million	62.16

Evolv Technologies’ competitors have higher revenue and earnings than Evolv Technologies. Evolv Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Evolv Technologies competitors beat Evolv Technologies on 8 of the 13 factors compared.

About Evolv Technologies

Evolv Technologies Holdings, Inc. provides artificial intelligence (AI)-based weapons detection for security screening. Its products include Evolv Express, a touchless security screening system designed to detect firearms, improvised explosive devices, and tactical knives; and Evolv Insights that provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance, and alarm statistics. The company was founded in 2013 and is headquartered in Waltham, Massachusetts.