Financial Comparison: EVgo (NASDAQ:EVGO) vs. BRP (NASDAQ:DOOO)

BRP (NASDAQ:DOOO) and EVgo (NASDAQ:EVGO) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

17.4% of EVgo shares are held by institutional investors. 58.8% of EVgo shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BRP	-0.34%	61.26%	4.21%
EVgo	-14.76%	N/A	-5.69%

Volatility and Risk

BRP has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, EVgo has a beta of 2.35, suggesting that its share price is 135% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for BRP and EVgo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRP	1	6	8	3	2.72
EVgo	1	2	6	0	2.56

BRP presently has a consensus target price of $79.60, suggesting a potential upside of 14.20%. EVgo has a consensus target price of $5.82, suggesting a potential upside of 92.60%. Given EVgo’s higher possible upside, analysts plainly believe EVgo is more favorable than BRP.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRP	$5.44 billion	0.94	-$154.60 million	($0.24)	-290.42
EVgo	$256.83 million	3.62	-$44.33 million	($0.39)	-7.74

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

Summary

BRP beats EVgo on 8 of the 15 factors compared between the two stocks.

About BRP

BRP Inc., together with its subsidiaries, designs, develops, manufactures, distributes, and markets powersports vehicles and marine products in the United States, Canada, Europe, the Asia Pacific, Mexico, Austria, and internationally. The Powersports segment offers year-round products, such as Can-Am all-terrain vehicles, side-by-side vehicles, and three-wheeled vehicles; and seasonal products, including Ski-Doo and Lynx snowmobiles, Sea-Doo personal watercrafts and pontoons, Rotax engines for karts and recreational aircraft, and Pinion gearboxes with smart shift systems. The Marine segment provides Alumacraft, Manitou, Quintrex, Stacer, and Yellowfin boats; Rotax engines for jet boats; and Rotax S outboard engine. The company was formerly known as J.A. Bombardier (J.A.B.) Inc. and changed its name to BRP Inc. in April 2013. BRP Inc. was founded in 1937 and is headquartered in Valcourt, Canada.

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.