Critical Review: ChargePoint (NYSE:CHPT) vs. Strattec Security (NASDAQ:STRT)

ChargePoint (NYSE:CHPT) and Strattec Security (NASDAQ:STRT) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares ChargePoint and Strattec Security’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ChargePoint	-65.79%	-131.65%	-23.35%
Strattec Security	3.31%	9.11%	5.66%

Volatility and Risk

ChargePoint has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, Strattec Security has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Earnings & Valuation

This table compares ChargePoint and Strattec Security”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ChargePoint	$417.08 million	0.63	-$277.07 million	($12.00)	-0.96
Strattec Security	$565.07 million	0.49	$18.68 million	$4.57	14.62

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ChargePoint and Strattec Security, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ChargePoint	2	7	1	1	2.09
Strattec Security	1	0	0	0	1.00

ChargePoint currently has a consensus target price of $27.88, suggesting a potential upside of 141.93%. Given ChargePoint’s stronger consensus rating and higher probable upside, equities research analysts plainly believe ChargePoint is more favorable than Strattec Security.

Institutional & Insider Ownership

37.8% of ChargePoint shares are held by institutional investors. Comparatively, 68.9% of Strattec Security shares are held by institutional investors. 3.5% of ChargePoint shares are held by company insiders. Comparatively, 6.4% of Strattec Security shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Strattec Security beats ChargePoint on 9 of the 15 factors compared between the two stocks.

About ChargePoint

ChargePoint Holdings, Inc., together with its subsidiaries, provides electric vehicle (EV) charging networks and charging solutions in the North America and Europe. The company serves commercial, such as retail, workplace, hospitality, parking, recreation, municipal, education, and highway fast charge; fleet, which include delivery, take home, logistics, motor pool, transit, and shared mobility; and residential including single family homes and multi-family apartments and condominiums customers. ChargePoint Holdings, Inc. was founded in 2007 and is headquartered in Campbell, California.

About Strattec Security

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also offers full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.